Which state's laws and equity will the arbitrator apply in a Card My Yard dispute?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. The arbitrator may issue summary orders disposing of all or part of a claim and provide for temporary restraining orders, preliminary injunctions, injunctions, attachments, claim and delivery proceedings, temporary protective orders, receiverships, and other equitable, interim or final relief.
- i. Each Party consents to the enforcement of such orders, injunctions, etc., by any court having jurisdiction.
- ii. The arbitrator has subpoena powers limited only by the laws of the state of Utah.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the arbitrator's subpoena powers are limited only by the laws of the state of Utah. This means that during arbitration, while the proceedings will likely be governed by the rules of the American Arbitration Association, the arbitrator's ability to compel testimony or the production of documents is restricted to the extent permitted by Utah law.
For a prospective Card My Yard franchisee, this is an important consideration if a dispute arises that requires arbitration. Although the franchise agreement and potentially other state laws will govern the substance of the dispute, the procedural aspects related to obtaining evidence will be subject to Utah law. This could impact the franchisee's ability to gather necessary information to support their case, depending on where they are located and the differences between Utah law and the laws of their own state.
Therefore, franchisees should understand the implications of Utah law on the arbitration process and consider consulting with legal counsel to assess how this might affect their rights and obligations in the event of a dispute with Card My Yard. This also highlights the importance of understanding the legal framework governing dispute resolution, as it can significantly influence the outcome of any arbitration proceedings.