What law governs arbitration for Buns On Fire, excluding state arbitration law?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The Federal Arbitration Act shall govern, excluding all state arbitration law. Massachusetts's law shall govern all other issues.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the Federal Arbitration Act governs arbitration, specifically excluding all state arbitration laws. This means that any arbitration proceedings between Buns On Fire and a franchisee will be conducted under the rules and guidelines established by the federal law, offering a standardized approach to dispute resolution across different states.
This clause ensures that the arbitration process is uniform, regardless of the state in which the Buns On Fire restaurant is located. However, Massachusetts law governs all other issues outside of arbitration. The location of the arbitration will be in the state where the restaurant is located.
This may preempt certain state-specific regulations that might otherwise apply. For a prospective franchisee, this implies that familiarity with the Federal Arbitration Act is crucial, as it will dictate the procedures and standards applicable in case of a dispute requiring arbitration. Franchisees should also be aware of the circumstances in which Buns On Fire may choose to submit a dispute to a court instead of arbitration, such as actions to collect fees, for injunctive relief, or to protect intellectual property.