Where will arbitration occur for Carvel disputes, and who bears the costs and expenses?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. The Franchise Agreement requires binding arbitration. The arbitration will occur at the offices of our principal place of business (currently Atlanta, Georgia) or another suitable location chosen by us in the city where our headquarters is located, with the prevailing party's costs and expenses to be borne by the other party. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, arbitration proceedings will generally occur at the American Arbitration Association's (AAA) offices or other suitable offices selected by Carvel in the metropolitan area where Carvel's principal place of business is located. The arbitrator does not have the authority to select a different hearing location. However, for franchisees in California, the arbitration will occur at the offices of Carvel's principal place of business (currently Atlanta, Georgia) or another suitable location chosen by Carvel in the city where its headquarters is located.
The FDD states that in California, the prevailing party's costs and expenses are to be borne by the other party.
It is important to note that the Franchise Agreement contains provisions requiring application of the laws of Georgia, which may not be enforceable under California law. The FDD advises prospective franchisees to seek legal counsel to determine the applicability of California and federal laws regarding venue restrictions to a forum outside of California.