What section of the Carbones Pizzeria Franchise Agreement covers dispute resolution by arbitration or mediation?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| u. Dispute resolution by arbitration or mediation | Section 17 | Except for certain disputes, all disputes must be mediated, and if not settled by mediation, are then subject to arbitration. | |
| v. Choice of forum | Section 17 | Mediation and arbitration must be in Hennepin County, Minnesota | |
| w. Choice of Law | Section 18 | Minnesota law generally applies |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, dispute resolution through arbitration or mediation is addressed in Section 17 of the Franchise Agreement. This section stipulates that, with the exception of certain disputes, all disputes must first undergo mediation. If mediation is unsuccessful, the disputes are then subject to arbitration.
For a prospective Carbones Pizzeria franchisee, this means that any disagreements with the franchisor will initially be addressed through mediation, a process where a neutral third party helps facilitate a resolution. If mediation fails to produce a settlement, the dispute will proceed to arbitration, a more formal process where a neutral arbitrator makes a binding decision.
Furthermore, the FDD specifies that both mediation and arbitration proceedings must take place in Hennepin County, Minnesota. This is an important consideration for franchisees located outside of Minnesota, as it would require them to travel to Minnesota for dispute resolution. The agreement also states that Minnesota law generally applies to the Franchise Agreement.