If arbitration is demanded by either party in a Caring Transitions franchise dispute, where will the arbitration be conducted?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Site of Arbitration, Mediation, and/or Litigation.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
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- In the event that either party shall make demand for arbitration, the arbitration shall be conducted in a mutually agreed upon site in accordance with Section 11 of the Commercial Arbitration Rules of the American Arbitration Association.
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- The law regarding franchise registration, employment, covenants not to compete, and other matters of local concern will be governed by the laws of the State of South Dakota; but as to contractual and all other matters, this Agreement and all provisions of this instrument will be and remain subject to the application, construction, enforcement, and interpretation under the governing law of the State of Ohio. Any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of South Dakota or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the South Dakota Franchise Act.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the location of arbitration depends on the state where the franchise was purchased and the specific agreements in place. For franchisees in Washington, any arbitration or mediation must occur in Washington state, or at a location mutually agreed upon by both parties at the time of arbitration or mediation, or as determined by the arbitrator or mediator.
For franchisees in South Dakota, if either party demands arbitration, the arbitration site must be mutually agreed upon and follow Section 11 of the Commercial Arbitration Rules of the American Arbitration Association. However, any provision restricting jurisdiction or venue to a forum outside of South Dakota is void concerning a claim enforceable under the South Dakota Franchise Act.
Prospective franchisees should carefully review the franchise agreement and any state-specific addenda to understand their rights and obligations regarding arbitration, mediation, and litigation. It is also important to consult with an attorney to fully understand the implications of these clauses and how they may affect dispute resolution.