Can a Bombs Away franchisee in Michigan agree to arbitration outside of Michigan at the time of arbitration?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (f) A provision requiring that arbitration or litigation be conducted outside this state.
This shall not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee in Michigan is not bound by a franchise agreement provision that requires arbitration or litigation to be conducted outside of Michigan. However, the FDD states that a Bombs Away franchisee can enter into an agreement to conduct arbitration at a location outside of Michigan at the time of arbitration.
This means that while the initial franchise agreement cannot force a Michigan franchisee into out-of-state arbitration, the franchisee can later agree to it. This provides some flexibility, allowing for potentially more convenient or cost-effective arbitration arrangements if both Bombs Away and the franchisee agree.
It is important for prospective Bombs Away franchisees in Michigan to understand this provision. While they cannot be forced into out-of-state arbitration based on the franchise agreement alone, they should be aware that they can voluntarily agree to it later. Franchisees should carefully consider the implications of such an agreement, including potential costs and logistical challenges, before agreeing to arbitrate outside of Michigan.