Is negotiation or mediation mandatory for Excluded Claims in Bigfoot Forestry disputes?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Dispute involving an Excluded Claim is not subject to mandatory arbitration unless both parties agree otherwise.
- **22.3.
Litigation.** If a Dispute involves an Excluded Claim, then either party may file a lawsuit in any state or federal court of general jurisdiction in accordance the choice of venue provision below.
The parties hereby express their clear and unequivocal intent that a court, rather than a mediator or arbitrator, has exclusive jurisdiction to decide the threshold issue of whether a Dispute involves an Excluded Claim (i.e., whether any Claim alleges a breach of §14, §17 or [§21
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, disputes involving Excluded Claims are not subject to mandatory arbitration unless both parties agree. If a dispute involves an Excluded Claim, either party can file a lawsuit in a state or federal court. The FDD specifies that a court has exclusive jurisdiction to decide whether a dispute involves an Excluded Claim.
This means that for certain types of claims, a franchisee may have the option to pursue litigation directly without first going through mediation or arbitration, which is a common requirement in many franchise agreements. However, this also means that Bigfoot Forestry can choose to litigate such claims as well.
The venue for all mediation, arbitration, and litigation will be in the county where Bigfoot Forestry maintains its principal place of business, which is currently York County, South Carolina. Both parties waive any objection to this venue and consent to the jurisdiction of those courts. This could mean additional travel and expense for a franchisee should a dispute arise.
It is important for a prospective Bigfoot Forestry franchisee to understand what constitutes an Excluded Claim, as defined elsewhere in the FDD, to fully grasp the implications of this clause. Understanding the types of claims that fall under this exclusion is crucial for assessing the potential legal pathways available in case of a dispute.