Where will arbitration proceedings be held for Body20 franchisees in North Dakota, as per the Rider?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- ARBITRATION. The following is added to the end of Section 16.3 of the Franchise Agreement:
NOTWITHSTANDING THE FOREGOING, TO THE EXTENT REQUIRED BY THE NORTH DAKOTA FRANCHISE INVESTMENT LAW (UNLESS SUCH A
REQUIREMENT IS PREEMPTED BY THE FEDERAL ARBITRATION ACT), ARBITRATION PROCEEDINGS WILL BE HELD AT A SITE TO WHICH WE AND YOU AGREE.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, specifically the Rider to the Franchise Agreement for use in North Dakota, the location for arbitration proceedings will be a site agreed upon by both Body20 and the franchisee. This condition applies to the extent required by the North Dakota Franchise Investment Law, unless such a requirement is preempted by the Federal Arbitration Act.
This means that if North Dakota law mandates a specific location or process for arbitration, that law will govern, unless federal law takes precedence. The agreement emphasizes mutual consent in determining the arbitration site, suggesting a degree of flexibility. However, the ultimate decision may depend on legal requirements at the state and federal levels.
For a prospective Body20 franchisee in North Dakota, this implies that while the franchise agreement aims for a mutually agreed-upon arbitration location, the franchisee should be aware of the potential influence of North Dakota's Franchise Investment Law and the Federal Arbitration Act. It would be prudent to clarify with Body20 during the negotiation process what specific factors or legal considerations might affect the choice of arbitration location.