In what courts can a judgment be entered upon the arbitration award for Black Bear Diner?
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.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, a judgment on the arbitration award can be entered in any state or federal court in California, or in the state where the Development Area is located. This means that after arbitration, the prevailing party can seek court enforcement of the arbitrator's decision.
This clause provides Black Bear Diner with options for enforcing the arbitration award, depending on the location of the franchisee and the development area. For a prospective franchisee, this means that if a dispute arises and goes to arbitration, the resulting decision can be legally enforced through the court system. The franchisee should be aware that they may have to defend the judgment in either California or their own state, depending on where Black Bear Diner chooses to pursue enforcement.
It is important to note that the arbitration itself will be conducted in Redding, California, or another mutually agreed-upon location. The arbitrator's decision is final and binding, but with specific limitations: the arbitrator cannot stay a pending termination of the agreement, award punitive damages, or modify any lawful term of the agreement. This arbitration clause is governed by the Federal Arbitration Act, emphasizing its enforceability and the interstate commerce nature of the franchise agreement.