What happens if there is a protest of arbitrability in a dispute with Beverly Anns Cookie?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a party protests the arbitrability of a dispute, the arbitration will not proceed until the arbitrator or an appropriate court resolves the protest. This means that before the actual arbitration process can begin, the arbitrator or a court must first determine whether the dispute is even subject to arbitration based on the terms of the franchise agreement.

This process could potentially delay the resolution of the dispute, as the parties must first address the question of whether arbitration is the appropriate forum. It also introduces the possibility of court involvement, which arbitration is typically intended to avoid. The franchisee should be aware that any delay caused by a protest of arbitrability could prolong the period of uncertainty and potentially increase legal costs.

This clause ensures that both Beverly Anns Cookie and the franchisee have the opportunity to challenge whether a particular dispute should be resolved through arbitration. It is a fairly standard provision in franchise agreements, as it allows parties to ensure that arbitration is only used in appropriate circumstances as defined by the agreement and applicable law.