Where will binding arbitration take place for disputes with Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that it has and will continue to develop a substantial and continuing relationship with Franchisor at its principal offices in the State of North Carolina, where Franchisor's decision-making authority is vested, franchise operations are conducted and supervised, and where this Agreement was rendered binding.
Therefore, the parties agree that, to the extent that any Actions cannot be resolved directly between Franchisee and Franchisor, and following compliance with the applicable mediation requirements set forth in Article 21(b)(i) above, any Action arising out of or relating to this Agreement or the making, performance, or interpretation thereof shall upon thirty (30) days written notice by either party be resolved, except as elsewhere expressly provided in this Agreement, upon application by any such party by binding arbitration in the city of Franchisor's then-current principal place of business (currently Elizabethtown, North Carolina), in accordance with the Federal Arbitration Act using the Commercial Arbitration Rules then prevailing of the American Arbitration Association, including without limitation the Optional Rules for Emergency Measures of Protection ("AAA"), and not under any state arbitration laws, and judgment on the arbitration award may be entered in any court of competent jurisdiction.
The arbitrator need not be affiliated the AAA.
Franchisee and Franchisor agree that arbitration shall be conducted on an individual - not a class-wide basis.
The Federal Arbitration Act shall apply to all arbitration and arbitration venue questions.
Any award by the arbitrator(s) shall be final, binding and nonappealable.
The matter shall be heard by one arbitrator mutually selected by the parties having at least ten (10) years' experience in practicing franchise law during which franchise law is or has been their primary area of practice and shall have substantial experience in the preparation of franchise agreements and franchise disclosure documents.
Franchisee understands that by agreeing to arbitrate it gives up jury and appeal and other rights it might have in court.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, any disputes that cannot be resolved directly between the franchisee and franchisor, after complying with mediation requirements, will be settled through binding arbitration. This arbitration will occur in the city of the franchisor's principal place of business. Currently, this location is Elizabethtown, North Carolina. The arbitration process will follow the Federal Arbitration Act, using the Commercial Arbitration Rules of the American Arbitration Association (AAA).
The arbitrator selected must have at least ten years of experience practicing franchise law. The arbitrator should also have significant experience in preparing franchise agreements and franchise disclosure documents. The agreement emphasizes that arbitration will be conducted on an individual basis, not as a class-wide action. The decision made by the arbitrator will be final, binding, and nonappealable.
This clause means a Burneys Sweets More franchisee agrees to resolve disputes through arbitration rather than through court litigation, giving up the right to a jury trial and appeals. The location of the arbitration in Elizabethtown, North Carolina, means that franchisees may incur travel and legal costs to attend the arbitration, especially if they are located far from North Carolina. Franchisees should consider the implications of these conditions before signing the franchise agreement.