Where will all arbitration proceedings be conducted for Casiola franchise disputes?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Any dispute between the parties relating to this Agreement shall be brought in accordance with the dispute resolution procedures set forth in the Franchise Agreement. Notwithstanding the foregoing, if any of the dispute resolution procedures set forth in the Franchise Agreement conflict with any of the terms of this Agreement, the terms of this Agreement shall prevail. Without limitation to the foregoing, you agree that:
(a) Arbitration – Except, at our option, as to any claims or disputes related to or concerning a breach of this Agreement by you that may entitle us to the award of injunctive relief, you agree that any and all disputes, controversies, and claims, arising from and/or related to this Agreement, shall be submitted to the American Arbitration Association ("AAA") for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with the AAA's then current rules for commercial disputes, except as may be otherwise required in this Agreement. All arbitration proceedings shall be conducted in Orange County, Florida or, if suitable AAA facilities are not available in Orange County, Florida, then at a suitable AAA location selected by the arbitrator that is located closest to Orange County, Florida.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, arbitration proceedings for disputes related to the franchise agreement will generally take place in Orange County, Florida. Specifically, the proceedings will be conducted at the American Arbitration Association (AAA) facilities located in Orange County, Florida. If suitable AAA facilities are unavailable in Orange County, the arbitration will occur at a suitable AAA location selected by the arbitrator that is closest to Orange County, Florida.
This requirement means that a Casiola franchisee, regardless of where their franchise is located, may be required to travel to Orange County, Florida for arbitration hearings. This could result in increased costs for travel, accommodation, and local legal representation. Franchisees should consider these potential expenses when evaluating the franchise opportunity.
It's important to note that the Washington Franchise Agreement Amendment provides an exception. For franchises 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. Additionally, the Illinois Franchise Agreement Amendment states that while a Franchise Agreement may provide for arbitration in a venue outside Illinois, any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void.