Where will arbitration take place for disputes related to the Big Apple Bagels Preliminary Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Paragraph 9 | In accordance with the American Arbitration Association in the major city nearest where our principal office address is then located (currently it would be Chicago, Illinois). Subject to applicable state law |
| v. Choice of forum | Paragraph 9 | Arbitration (subject to applicable state law) |
| w. Choice of law | Not applicable |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, disputes related to the Preliminary Agreement will be settled through arbitration. The arbitration will be conducted in accordance with the American Arbitration Association guidelines. The location for arbitration will be the major city nearest to Big Apple Bagels' principal office address, which is currently Chicago, Illinois. This is subject to applicable state law.
For a prospective franchisee, this means that if a dispute arises concerning the Preliminary Agreement with Big Apple Bagels, the resolution process will involve arbitration rather than court litigation. The arbitration will take place in Chicago, which could mean travel expenses for franchisees located elsewhere. Franchisees should be aware of this potential cost when considering the franchise opportunity.
It is important to note that the arbitration process is subject to applicable state laws, which may influence the procedures or outcomes. Franchisees should consult with legal counsel to understand their rights and obligations under the Preliminary Agreement and the potential implications of the arbitration clause. Understanding the location and process of dispute resolution is a crucial part of evaluating the franchise agreement.