Where will all arbitration proceedings be held relating to a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Arbitration. Except as stated in Section 19.1.D. (Excepted Disputes) of this Agreement, all disputes between you, your affiliates, Owners, guarantors, and/or your or your affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Franchised Business, will be resolved by binding arbitration. The arbitration proceeding shall be conducted by one arbitrator and, except as this Section 19.1 otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association (the "AAA"). All arbitration proceedings will be held at AAA's offices or other suitable offices that we select in the metropolitan area in which our principal place of business is then located. The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
- B. Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 19.1, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 19.1, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with Section 19.1.D. (Excepted Disputes).
- C. Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, all arbitration proceedings will be held 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 location for the hearing. This applies to all disputes relating to the Franchise Agreement, the relationship between the franchisee and Carvel, or the franchised business.
This means that a Carvel franchisee may be required to travel to the location of Carvel's principal place of business for any arbitration hearings. The FDD does not specify where Carvel's principal place of business is. This could potentially add significant costs for travel, accommodation, and legal representation, depending on the distance between the franchise location and the arbitration site.
The arbitration will be conducted by one arbitrator according to the Commercial Arbitration Rules of the American Arbitration Association, except as otherwise provided in Section 19.1 of the FDD. All matters relating to arbitration will be governed by the Federal Arbitration Act. Carvel and the franchisee agree that arbitration will be conducted on an individual basis and not as a class-wide action.