Does the binding arbitration agreement for Casiola franchise disputes also apply to the System?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
(2) Arbitration – Subject to the prerequisite requirements of non-binding mediation as set forth in Sub-Article 18.G.(1), and, except at Franchisor's election, as to any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement, Franchisor and Franchisee agree that all disputes, controversies, and claims, arising from and/or related to this Agreement, the relationship between Franchisor and Franchisee, the System, and/or the validity of this Agreement and/or the Ancillary Agreements, shall be submitted, on demand of either Franchisor or Franchisee, to AAA for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with AAA's then current rules for commercial disputes, except as may be otherwise required in this Article 18.G. 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.
In connection with binding arbitration, Franchisor and Franchisee further agree that:
- (a) All matters relating to arbitration, will be governed by the United States Federal Arbitration Act, except as expressly or otherwise set forth in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, disputes arising from or related to the franchise agreement, the relationship between the franchisor and franchisee, the Casiola System, and/or the validity of the agreement will be submitted to binding arbitration. This applies to disputes, controversies, and claims arising from or related to the agreement between Casiola and the franchisee.
However, there are exceptions. Casiola has the option to exclude claims or disputes related to a breach of the agreement by the franchisee that may entitle Casiola to injunctive relief, including violations of Article 6 of the agreement. This means that Casiola can choose to pursue injunctive relief in court rather than through arbitration. Also, the prerequisite requirement of non-binding mediation does not apply at Casiola's election to claims regarding a franchisee's breach that could lead to injunctive relief, or to claims by either party related to failure to pay fees or other monetary obligations.
The arbitration will be conducted by a single arbitrator in accordance with the American Arbitration Association's (AAA) rules for commercial disputes, unless otherwise required in Article 18.G of the franchise agreement. All arbitration proceedings will take place in Orange County, Florida, or at a suitable AAA location closest to Orange County if facilities are unavailable there. The United States Federal Arbitration Act governs all matters relating to arbitration, except as expressly set forth in the agreement.