Does a demand for arbitration against Beverly Anns Cookie affect the termination of the Franchise Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
A demand for arbitration will not operate to stay, postpone or rescind the effectiveness of any termination of this Franchise Agreement. Arbitration will not proceed until any protest of arbitrability is resolved by the arbitrator or by an appropriate court, if necessary.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, a demand for arbitration does not automatically halt or reverse the termination of the Franchise Agreement. The FDD specifies that initiating arbitration by making a written demand does not prevent or delay the termination from taking effect.
This means that Beverly Anns Cookie can proceed with terminating the agreement even if the franchisee has initiated arbitration proceedings. However, the arbitration process will still move forward to address the underlying dispute, assuming it is deemed arbitrable. The arbitrator or a court must resolve any challenges to the arbitrability of the issue before arbitration can proceed.
For a prospective Beverly Anns Cookie franchisee, this indicates that the termination process is separate from dispute resolution. If Beverly Anns Cookie decides to terminate the agreement, the franchisee must still comply with the termination terms, even while pursuing arbitration. This could involve ceasing operations, de-identifying the vehicle, and adhering to post-term obligations, regardless of the pending arbitration.