Do Bor Restoration and the franchisee waive the right to a jury trial?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
d. Except as expressly provided in this Franchise Agreement, EACH PARTY KNOWINGLY WAIVES ALL RIGHTS TO A COURT OR JURY TRIAL AND, INSTEAD, SELECTS FACE-TO-FACE MEETINGS, MEDIATION AND FINALLY BINDING ARBITRATION AS THE SOLE MEANS TO RESOLVE DISPUTES UNDERSTANDING THAT FACE-TO-FACE MEETINGS, MEDIATION AND ARBITRATION MAY BE LESS FORMAL THAN A COURT OR JURY TRIAL, MAY USE DIFFERENT RULES OF PROCEDURE AND EVIDENCE, THAT AN APPEAL PROCESS IS GENERALLY LESS AVAILABLE, AND THAT THE FEES AND COSTS ASSOCIATED WITH MEDIATION AND ARBITRATION MAY BE SUBSTANTIALLY GREATER THAN IN CIVIL LITIGATION.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, both Bor Restoration and the franchisee agree to waive their rights to a jury trial. Instead of a jury trial, disputes will be resolved through face-to-face meetings, mediation, and binding arbitration.
This means that any legal disagreements that arise between the franchisee and Bor Restoration will not be decided in a traditional courtroom setting with a jury. Instead, the parties will attempt to resolve the issue through less formal methods like direct discussions and mediation. If these methods fail, the dispute will be settled by a neutral arbitrator, whose decision will be legally binding.
Bor Restoration highlights that these alternative dispute resolution methods may be less formal than a court trial, may use different rules of procedure and evidence, and generally have a less available appeal process. The FDD also notes that the costs associated with mediation and arbitration may be substantially greater than in civil litigation. Prospective franchisees should consider these factors and understand the implications of waiving their right to a jury trial, including the potential for higher costs and limited appeal options.