Where will all arbitration hearings and other proceedings take place for Black Bear Diner franchise disputes?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Arbitration. This Agreement is a written agreement evidencing a transaction involving commerce and is, therefore, subject to the terms and provisions of the Federal Arbitration Act, Title 9 of the United States Code. All disputes arising out of or relating to this Agreement, or to any other agreements between the parties or with regard to interpretation, formation or breach of this or any other agreement between the parties, shall be settled by binding arbitration conducted in Redding, California, or such place as may be mutually agreeable to the parties, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. or at such other place as may be mutually agreeable to the parties. The decision of the arbitrators will be final and binding on all parties to the dispute; however, the arbitrators may not under any circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance. A judgment may be entered upon the arbitration award by any state or federal court in California or the state within which the Development Area is located. The prevailing party in any action or proceeding arising under, out of, in connection with, or in relation to this Agreement or the Black Bear Diner restaurant conducted pursuant to this Agreement shall be entitled to recover its reasonable attorneys' fees and costs.
DEVELOPER EXPRESSLY ACKNOWLEDGES THAT DEVELOPER HAS READ THE TERMS OF THIS BINDING ARBITRATION PROVISION AND SPECIFICALLY AFFIRMS THAT THIS PROVISION IS ENTERED INTO WILLINGLY AND VOLUNTARILY AND WITHOUT ANY FRAUD, DURESS OR UNDUE INFLUENCE ON THE PART OF FRANCHISOR OR ANY OF FRANCHISOR'S AGENTS OR EMPLOYEES.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, arbitration hearings for disputes will be conducted in Redding, California, or at another location mutually agreed upon by both parties. This applies to any disputes arising from the Franchise Agreement or other agreements between Black Bear Diner and the franchisee, including disagreements about interpretation, formation, or breaches of the agreement.
This arbitration process is governed by the Federal Arbitration Act and the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator's decision is final and binding, but they cannot stay the termination of the agreement, award punitive damages, or modify any lawful term of the agreement. A judgment on the arbitration award can be entered in any state or federal court in California or the state where the development area is located.
The FDD also states that the prevailing party in any legal action related to the Franchise Agreement or the Black Bear Diner restaurant is entitled to recover reasonable attorney's fees and costs. Black Bear Diner emphasizes that the franchisee acknowledges they have read and willingly agreed to the binding arbitration provision without any undue influence.
For a prospective franchisee, this means that any legal disputes with Black Bear Diner will likely be resolved through arbitration rather than in court, unless both parties agree otherwise. The location of these proceedings is primarily set in Redding, California, which may require travel and associated expenses for franchisees located elsewhere. Franchisees should carefully consider the implications of this arbitration clause, including the limitations on the arbitrator's powers and the potential for covering legal fees if they prevail in a dispute.