If the amount in controversy exceeds $100,000, in which courts can Caring Transitions require adjudication?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
arty by the AAA in the original arbitration.
- 16.3 Exception to Arbitration. Notwithstanding the provisions of Section 16.2 above, if the amount in controversy in any dispute between Franchisor and Franchisee exceeds $100,000 in the aggregate, Franchisor shall have the right to require that the matter be adjudicated in either the Common Pleas Court of Hamilton County, Ohio or the United States District Court for the Southern District of Ohio, in lieu of arbitration. If an arbitration demand has already been filed in connection with such
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, if a dispute between Caring Transitions and a franchisee involves an amount exceeding $100,000, Caring Transitions has the right to require that the dispute be adjudicated in either the Common Pleas Court of Hamilton County, Ohio, or the United States District Court for the Southern District of Ohio, instead of going through arbitration. This means that Caring Transitions can choose to have the dispute resolved in a traditional court setting rather than through an arbitrator.
This clause gives Caring Transitions more control over the legal proceedings in disputes involving significant financial amounts. By choosing a court in Ohio, Caring Transitions likely benefits from familiarity with local laws and procedures. Franchisees, on the other hand, may face the inconvenience and expense of litigating in Ohio, regardless of where their franchise is located.
It is important to note that Caring Transitions also retains the right to remove a dispute to one of these courts even if an arbitration demand has already been filed. This provides Caring Transitions with flexibility in determining the most advantageous forum for resolving high-value disputes. Prospective franchisees should consider the implications of this clause, particularly the potential costs and logistical challenges of litigating in Ohio should a significant dispute arise.