Does the Federal Arbitration Act apply to the Beyond Juicery Eatery franchise agreement?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 23 requires binding arbitration. The arbitration will occur at the forum indicated in Section 23.02, with the costs being borne by the non-prevailing party. Prospective Franchise Owners are encouraged to consult legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Franchise Agreement restricting venue to a forum outside of the State of California.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, the applicability of the Federal Arbitration Act to the franchise agreement is something a prospective franchisee should investigate.
Specifically, for franchisees in California, the FDD states that Section 23 of the Franchise Agreement requires binding arbitration. The FDD advises prospective franchise owners to seek legal counsel to determine the applicability of California and federal laws, including the Federal Arbitration Act, to any provisions of the Franchise Agreement that restrict venue to a forum outside of California.
This means that while Beyond Juicery Eatery's standard franchise agreement includes a binding arbitration clause, its enforceability and the applicability of the Federal Arbitration Act may depend on the franchisee's location and relevant state laws. Prospective franchisees should consult with an attorney to understand their rights and obligations regarding arbitration, particularly if they are located in a state with specific franchise laws like California.