Where must disputes with Black Bear Diner be mediated and arbitrated?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | ||
|---|---|---|---|---|
| Area Development Agreement is terminated or expires | the Area Development Agreement | and services similar to those provided by a Black Bear Diner restaurant within the Development Area or within 25 miles of any Black Bear Diner restaurant (subject to state law). | ||
| s. | Modification of the Development Agreement | Section 12.5 | The Area Development Agreement can only be modified or amended by written agreement signed by both parties. | |
| t. | Integration/merger clause | Section 12.5 | Only the terms of the Area Development Agreement are binding (subject to state law) and any other promises may not be enforceable. Nothing in the Area Development Agreement or any other agreement is intended to disclaim representations made in this disclosure document. | |
| u. | Dispute resolution by arbitration or mediation | Section 13.6 | Except for certain claims, all disputes must be mediated and then arbitrated in Redding, California (subject to state law). |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–52)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, disputes with the company must first be mediated and then arbitrated. The location for both mediation and arbitration is Redding, California. This requirement is subject to state law, meaning that the enforceability of this clause may vary depending on the franchisee's location and relevant state regulations.
This clause means that a Black Bear Diner franchisee would likely need to travel to Redding, California, to resolve any disputes with the franchisor through mediation or arbitration. This could involve significant travel expenses, legal fees, and time away from their business. Franchisees should factor these potential costs into their assessment of the franchise opportunity.
It is important for prospective franchisees to understand the implications of dispute resolution clauses. Franchisees should consult with a legal professional to understand their rights and obligations under the franchise agreement, particularly concerning dispute resolution and choice of law. Understanding these aspects can help a franchisee prepare for potential conflicts and navigate them effectively.