In Michigan, can Beverly Anns Cookie require arbitration or litigation to be conducted outside of Michigan?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
This section does not require a renewal provision.
- (f) A provision requiring that arbitration or litigation be conducted outside the State of Michigan.
This shall not preclude you from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the franchise agreement cannot include a provision requiring arbitration or litigation to be conducted outside the state of Michigan. However, this does not prevent a Beverly Ann's Cookie franchisee from agreeing to conduct arbitration outside of Michigan at the time the arbitration is initiated.
This means that while the initial franchise agreement cannot mandate out-of-state arbitration or litigation, a franchisee can voluntarily agree to it later if a dispute arises. This protects the franchisee from being forced into a distant legal process from the outset.
This type of restriction is designed to protect franchisees in Michigan. It ensures that Beverly Ann's Cookie franchisees are not compelled to resolve disputes in a location that might be inconvenient or cost-prohibitive. Franchisees should carefully consider the implications before agreeing to out-of-state arbitration at a later date, as it could increase their legal expenses and logistical challenges.