factual

Where will the seat of arbitration be for Benjamin Franklin Plumbing, according to the FDD?

Benjamin_Franklin_Plumbing Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 23.2.1 The seat of arbitration will be the JAMS office closest to Columbia, Maryland, and all arbitration hearings shall take place at that office.

We have the right to designate headquarters for the Brand at a location other than Columbia, Maryland and to substitute that location for Columbia, Maryland for purposes of this Section.

Source: Item 23 — RECEIPTS (FDD pages 88–312)

What This Means (2025 FDD)

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, any mandatory arbitration will take place at the JAMS office closest to Columbia, Maryland. All arbitration hearings will occur at that location. However, Benjamin Franklin Plumbing retains the right to designate a different headquarters location other than Columbia, Maryland. If they do so, this new location will be substituted for Columbia, Maryland for the purposes of determining the arbitration seat.

This means that if a dispute arises between a franchisee and Benjamin Franklin Plumbing that requires arbitration, the franchisee may be required to travel to the JAMS office nearest to Columbia, Maryland (or the substituted headquarters location) for the hearings. This could involve significant travel expenses and time, depending on the franchisee's location.

It is important for prospective franchisees to understand this clause, as it determines the location where they may be required to resolve disputes with Benjamin Franklin Plumbing. Franchisees should consider the potential costs and inconvenience associated with traveling to the designated arbitration location. They should also monitor whether Benjamin Franklin Plumbing designates a new headquarters, as this would change the arbitration location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.