Who can choose to submit a dispute to a court or arbitration against Buns On Fire?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Either of us, as plaintiff, may choose to submit a dispute to a court or to arbitration administered by the American Arbitration Association ("AAA") under its Commercial Arbitration Rules (or by another nationally established arbitration association acceptable to you and us) and under the Federal Rules of Evidence. The plaintiff's election to arbitrate or to submit the dispute to the court system, including any compulsory counterclaims, is binding on the parties except that we shall have the option to submit to a court any of the following actions: to collect fees due under this Agreement; for injunctive relief; to protect our intellectual property, including Proprietary Marks; and to terminate this Agreement for a default. For any arbitration, the arbitrator(s) shall issue a reasoned award, with findings of fact and conclusions of law. The arbitration award and the decision on any appeal will be conclusive and binding on the parties. Actions to enforce an express obligation to pay money may be brought under the Expedited Procedures of the AAA's Commercial Arbitration Rules. The place of arbitration shall be in the state in which the Restaurant is located. The Federal Arbitration Act shall govern, excluding all state arbitration law. Massachusetts's law shall govern all other issues.
Disputes concerning the validity or scope of this Section, including whether a dispute is subject to arbitration, are beyond the authority of the arbitrator(s) and shall be determined by a court of competent jurisdiction pursuant to the Federal Arbitration Act, 9 U.S.C. §1 et seq., as amended from time to time. The provisions of this Section shall continue in full force and effect subsequent to any expiration or termination of this Agreement.
Either of us may appeal the final award of the arbitrator(s) to the appropriate U.S. District Court. The Court's review of the arbitrator's findings of fact shall be under the clearly erroneous standard, and the Court's review of all legal rulings shall be de novo. If it is determined that this provision for federal court review is not enforceable, then either party may appeal the arbitrator's final award to a panel of three arbitrators chosen under AAA procedures, employing the same standards of review stated immediately above.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, either Buns On Fire or the franchisee, acting as the plaintiff, can choose to submit a dispute to a court or to arbitration. The arbitration would be managed by the American Arbitration Association (AAA) following its Commercial Arbitration Rules, or by another nationally recognized arbitration association that both parties find acceptable. The plaintiff's decision to use arbitration or the court system is binding on both parties.
However, Buns On Fire retains the right to pursue certain actions in court, including collecting fees owed under the Franchise Agreement, seeking injunctive relief, protecting its intellectual property (including Proprietary Marks), and terminating the Franchise Agreement due to a default. For any arbitration, the arbitrator(s) must provide a reasoned award that includes findings of fact and conclusions of law. The arbitration award and any appeals are conclusive and binding.
Actions to enforce payment obligations can be pursued under the Expedited Procedures of the AAA's Commercial Arbitration Rules. The location for arbitration will be the state where the Buns On Fire restaurant is located. The Federal Arbitration Act governs the arbitration process, excluding state arbitration laws, while Massachusetts law governs all other issues. Disputes regarding the validity or scope of the arbitration section are to be resolved by a court, not the arbitrator.
This means that while franchisees have the option to initiate arbitration or court proceedings for general disputes, Buns On Fire maintains the right to choose a court for specific actions like collecting fees or protecting intellectual property. Franchisees should be aware of these conditions and understand the implications of the dispute resolution process outlined in the Franchise Agreement.