Under what financial circumstances can Caring Transitions require a dispute to be adjudicated in court instead of arbitration?
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 a dispute, Franchisor shall have the right to remove the matter to such court.
- 16.4 **WAIVER OF JURY TRIAL. EACH PARTY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION, PR
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions has the right to require disputes to be adjudicated in court rather than through arbitration if the amount in controversy exceeds $100,000 in the aggregate. This means that if a disagreement between Caring Transitions and a franchisee involves a total claim (or claims) that is more than $100,000, Caring Transitions can choose to have the dispute resolved in either the Common Pleas Court of Hamilton County, Ohio, or the United States District Court for the Southern District of Ohio.
This clause provides Caring Transitions with an option to litigate high-value disputes in a judicial setting, which they may perceive as more advantageous than arbitration depending on the specifics of the case. If Caring Transitions elects to litigate, they can remove the matter to the specified court, even if an arbitration demand has already been filed by the franchisee.
It is important to note that both Caring Transitions and the franchisee waive their rights to a jury trial in any action, proceeding, or counterclaim, whether at law or in equity. This means that any dispute, regardless of whether it is resolved through arbitration or in court, will be decided by a judge rather than a jury. This is a significant legal consideration for prospective franchisees.