Where will the arbitration take place for a Better Blend franchise dispute?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
17.1 Arbitration.
- (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.
- (b) Location. The place of arbitration shall be the city and state where BBF's headquarters are located.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the location for arbitration will be the city and state where Better Blend's headquarters are located. This means that if a dispute arises between a franchisee and Better Blend that requires arbitration, the proceedings will occur at the city and state of Better Blend's headquarters.
This is a standard clause in many franchise agreements, as it allows the franchisor to manage disputes in a location convenient for them. However, it may present a disadvantage for franchisees who may need to travel a significant distance to attend the arbitration, potentially increasing their legal costs. Franchisees should factor in these potential travel expenses when evaluating the franchise opportunity.
It is important to note that this arbitration clause does not apply to claims involving alleged infringement of Better Blend's intellectual property rights, which may be brought in a court authorized to hear such claims. Additionally, franchisees in certain states, such as Washington, may have the arbitration site determined within their state or a mutually agreed-upon location at the time of arbitration or mediation, or as determined by the arbitrator or mediator.