What law governs all matters relating to Byrider franchise arbitration?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) governs all matters relating to arbitration. This means that the procedures and enforcement of arbitration agreements between Byrider and its franchisees are subject to this federal law.
This clause is significant because it establishes a consistent legal framework for resolving disputes through arbitration, which is generally faster and less expensive than traditional litigation. However, the FDD also notes some state-specific exceptions. For example, in North Dakota, the arbitration site must be mutually agreed upon by Byrider and the franchisee, to the extent required by the North Dakota Franchise Investment Law, unless preempted by the Federal Arbitration Act.
The agreement also specifies that arbitration proceedings will be conducted by a single arbitrator according to the rules of the Judicial Arbitration and Mediation Service (JAMS) in the Indianapolis, Indiana metropolitan area. The arbitrator, not a court, will decide all questions of arbitrability. This comprehensive framework aims to provide clarity and predictability in dispute resolution, although franchisees should be aware of potential state-specific modifications to these general rules.