Does the arbitration provision in the Big Apple Bagels agreement continue after the agreement's expiration or termination?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
All disputes, controversies or claims arising out of or relating to this Agreement, shall be submitted for arbitration to the American Arbitration Association on demand of either party. The demand shall be submitted to, and the arbitration proceedings shall be conducted in the major city nearest where Franchisor's principal business address is then located, and shall be heard by one arbitrator in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association. All matters within the scope of the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) shall be governed by it. This provision shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the arbitration provision within the franchise agreement remains in effect even after the agreement expires or is terminated. This means that any disputes, controversies, or claims that arise from or relate to the agreement must still be submitted for arbitration, even after the franchise relationship has ended.
The arbitration process is to be managed by the American Arbitration Association, with proceedings taking place in the major city nearest to where Big Apple Bagels' principal business address is located. A single arbitrator will preside over the hearings, adhering to the Commercial Arbitration Rules of the American Arbitration Association. The Federal Arbitration Act governs all aspects within its scope.
This continuation of the arbitration provision is a significant point for prospective franchisees. It ensures that certain dispute resolution mechanisms remain in place, providing a structured way to address issues that may surface even after the franchise term concludes. Franchisees should be aware that this commitment to arbitration survives the end of the agreement, potentially affecting their legal options and costs should disagreements arise post-termination or expiration.