If Belocal parties dispute and cannot agree on a mediation or arbitration site, where will it be held?

According to Belocal's 2025 Franchise Disclosure Document, the site of any mediation or arbitration of disputes will be at a location mutually agreeable to all parties involved. However, if all parties cannot agree on a location, the arbitration or mediation will take place in Fargo, North Dakota. This amendment modifies the standard agreement to specify Fargo, North Dakota, as the default location when mutual agreement on a site cannot be reached.

This stipulation is particularly relevant for prospective Belocal franchisees located outside of North Dakota. It means that in the event of a dispute that proceeds to mediation or arbitration, they may be required to travel to Fargo, North Dakota, incurring travel expenses and potentially disrupting their business operations. This could add significant costs to resolving disputes with Belocal.

It is important for potential franchisees to consider this clause carefully, especially if they are located far from North Dakota. They should factor in the potential costs and inconvenience of traveling to Fargo for dispute resolution when evaluating the franchise opportunity. Franchisees may want to discuss alternative dispute resolution locations with Belocal during the negotiation process, although the FDD suggests that North Dakota will be the default location if no agreement is reached.