Where will all Body20 arbitration proceedings be held?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Procedure. Except as stated in Section 16.3(d) (Excepted Disputes), all disputes between you, your Affiliates, Owners, guarantors, and/or your or your Affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Studio will be resolved by binding arbitration. The arbitration proceeding shall be conducted by one arbitrator and in accordance with then-current Commercial Arbitration Rules of the AAA. All arbitration proceedings will be held at AAA's offices or other suitable offices that we select in the metropolitan area in which our principal place of business is then located.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, arbitration proceedings will take place at the AAA's offices or other suitable offices selected by Body20 in the metropolitan area where Body20's principal place of business is located. As of the agreement, Body20's principal place of business is at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660. Therefore, unless Body20 moves its principal place of business, arbitration will likely occur in the Newport Beach, California metropolitan area.
This means that a Body20 franchisee may be required to travel to the location of Body20's principal place of business for arbitration hearings. This could create a significant cost for franchisees who do not live near Newport Beach, California. Franchisees are typically responsible for their own travel, accommodation, and legal representation expenses during arbitration.
It is important to note that there are exceptions to the arbitration requirement. Disputes relating to the Lanham Act, intellectual property, or the payment of sums owed to Body20 may be litigated in the U.S. District Court for the district in which Body20 has its principal place of business. Additionally, either party may seek injunctive relief from a court of competent jurisdiction, even if the dispute is subject to arbitration.