Where will arbitration and mediation take place for dispute resolution related to a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration. | FA – Section 25.D | FA – Arbitration and mediation in San Diego County, State of California (subject to State law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 46–49)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, any dispute resolution through arbitration and mediation will take place in San Diego County, California. This is subject to state law. This information is found within the summary of Franchise Agreement Section 25.D.
For a prospective Burros Fries franchisee, this means that if a dispute arises with the franchisor that cannot be resolved informally, the franchisee may be required to travel to San Diego County, California, to participate in arbitration or mediation proceedings. This could involve significant travel expenses, legal fees, and time away from their business.
It is important for potential franchisees to understand the implications of this clause, especially if they are located outside of California. Franchisees should consider the potential costs and logistical challenges associated with resolving disputes in this location. They may want to consult with an attorney to discuss the implications of this clause and explore options for negotiating alternative dispute resolution terms.