Where will binding arbitration occur according to the Casiola Franchise Agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
In any arbitration or mediation involving a franchise 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.
(3) Consent to Jurisdiction and Venue Subject to the non-binding mediation and arbitration provisions set forth in this Article 18.G., Franchisor and Franchisee agree that any judicial action or legal proceeding must be brought in a court of competent jurisdiction located within Florida and within Orange County or the county closest to Orange County.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the location of arbitration or mediation for a franchise purchased in Washington will be in the state of Washington, 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. This condition is outlined in the Washington Franchise Agreement Amendment.
For franchisees outside of Washington, the standard agreement dictates that any judicial action or legal proceeding must occur in a court of competent jurisdiction located within Florida, specifically in Orange County or the county closest to Orange County. This applies subject to the non-binding mediation and arbitration provisions also outlined in the agreement.
However, Illinois franchisees have additional protections. The Illinois Franchise Disclosure Act stipulates that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration may still occur outside of Illinois. This means that while Casiola's standard agreement might specify Florida as the location for legal proceedings, Illinois franchisees may have the right to arbitrate within their own state or another mutually agreed-upon location, regardless of what the standard franchise agreement says.