Where will the arbitration hearing take place for disputes related to the Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitration hearing shall take place in Cook County, Illinois, before a single arbitrator.
Any party who fails or refuses to submit any dispute to binding arbitration following a lawful demand by the opposing party shall bear all costs and expenses incurred by the opposing party in compelling arbitration.
The parties shall have thirty days after the service of a Statement of Claim and demand for arbitration to agree on a single arbitrator.
If the parties cannot agree on a single arbitrator, the matter will be filed with and administered by the AAA, or if AAA is not available, any comparable arbitration body.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the arbitration hearing for disputes will take place in Cook County, Illinois, and will be conducted before a single arbitrator. This means that if a franchisee has a dispute with Buona that proceeds to arbitration, the legal proceedings will be held in Cook County, Illinois, regardless of where the franchise is located.
Buona indicates that if the parties cannot agree on a single arbitrator, the matter will be filed with and administered by the American Arbitration Association (AAA), or if AAA is not available, any comparable arbitration body. The franchisee may have to factor in travel and accommodation expenses to attend the arbitration hearings, which could increase the overall cost of resolving the dispute.
It is important to note that this arbitration clause does not apply to disputes related to the franchisee's use of Buona's Marks or Confidential Information, compliance with non-competition obligations, or any rights Buona may have to possession of the premises of the Buona Business under any sublease, lease or collateral assignments. These specific types of disputes may be handled through other legal avenues, potentially in different jurisdictions.