Where will the mediation occur if required in the Bombs Away Franchise Agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement requires mediation. The mediation will occur in Campbell, CA, with the costs being borne equally by Franchisor and Franchisee. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Mediation Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if mediation is required, it will take place in Campbell, CA. The costs associated with the mediation will be equally shared between Bombs Away and the franchisee.
However, the FDD also notes that prospective franchisees are encouraged to seek legal counsel to understand how California and federal laws might affect any franchise agreement provisions that restrict venue to a location outside of California. This is particularly relevant given that the standard Franchise Agreement requires application of California laws.
For franchisees purchasing in Washington, the mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the mediation, or as determined by the mediator at the time of mediation. This clause appears in an addendum and would supersede the standard agreement for Washington franchisees.