Where will arbitration or mediation take place for a Black Bear Diner franchise purchased in Washington?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
e mediation process shall be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties shall not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible shall not be excluded from discovery or admission as a result of its use in the mediation. The parties agree to participate in the mediation proceedings in good faith with the intention of resolving the dispute if at all possible within 30 days of the notice from the party seeking to initiate the mediation procedures.
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.
13.3 Consent to Jurisdiction
The parties agree that any action brought by Developer against Franchisor in any court, whether federal or state, shall be brought within such state and in the judicial district in which Franchisor has its principal place of business. Any action brought by Franchisor against Developer in any court, whether federal or state, may be brought within the state and judicial district in which
Franchisor has its principal place of business. The parties do hereby waive all questions of personal jurisdiction or venue for the purposes of carrying out this provision.
13.4 Cumulative Rights And Remedies
No right or remedy conferred upon or reserved to Franchisor or Developer by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy herein or by law or equity provided or permitted, but each shall be in addition to every other right or remedy. Nothing herein contained shall bar Franchisor's right to obtain injunctive relief against threatened conduct that shall cause it loss or damages including obtaining restraining orders, preliminary and permanent injunctions.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, disputes will first be addressed through a face-to-face meeting at a neutral location near Black Bear Diner's headquarters. If this doesn't resolve the issue, the parties will then proceed to non-binding mediation. This mediation will follow the Commercial Mediation Rules of the American Arbitration Association (AAA), unless both parties agree to use alternative rules. The mediator must be a neutral person with franchising experience, agreed upon by both parties. The costs for the mediator will be split equally.
If mediation is unsuccessful, the FDD states that arbitration will occur in Redding, California, or another mutually agreed-upon location. This arbitration is binding and follows the Commercial Arbitration Rules of the American Arbitration Association. However, the arbitrators are limited in their powers; they cannot halt a pending termination of the agreement, award punitive damages, or change any lawful term or business performance standard within the agreement.
For a Black Bear Diner franchise in Washington, 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. This means that if you purchase a franchise in Washington, legal actions could potentially take place in California, where Black Bear Diner has its principal place of business, or in Washington. The prevailing party in any legal action is entitled to recover reasonable attorney's fees and costs.