Does the Better Blend arbitration clause include questions of arbitrability?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsections (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the arbitration clause explicitly includes questions of arbitrability. This means that any dispute regarding whether a particular issue is subject to arbitration will itself be decided by the arbitrator, rather than a court. This is a common practice in franchising to streamline dispute resolution.
For a prospective Better Blend franchisee, this clause centralizes the resolution process within the arbitration framework. It prevents either party from delaying arbitration by first contesting the scope of the arbitration agreement in court. This can lead to quicker and potentially less expensive resolutions, as it avoids the dual process of court hearings followed by arbitration if the court determines the issue is arbitrable.
However, franchisees should be aware that agreeing to arbitrate questions of arbitrability means they have less opportunity to challenge the arbitrator's jurisdiction. If a franchisee believes a claim is outside the scope of the arbitration agreement, they must convince the arbitrator of this, rather than a judge. The arbitrator's decision on this matter is typically binding and difficult to appeal.
It is important for a potential Better Blend franchisee to fully understand the implications of this clause and how it affects their rights and options in case of a dispute with the franchisor. Franchisees should seek legal counsel to discuss the arbitration process and its potential impact on their specific circumstances.