Does the Cd One Price Cleaners agreement specify any exceptions to the arbitration requirement?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
23.2 Arbitration. Except as otherwise set forth in any other written agreement between Franchisee (or any of its owners) and Franchisor (or any of its affiliates), all controversies, disputes or claims between Franchisor (and its affiliates and their respective owners, officers, agents and employees, as applicable) and Franchisee (and its affiliates and their respective owners, officers, directors, agents and employees, as applicable) arising out of or related to:
- (a) this Agreement or any other agreement between Franchisee (or its owners) and Franchisor (or any of its affiliates), or any provision of any of such agreements;
- (b) Franchisor's (or any of its affiliate's) relationship with Franchisee;
- (c) the scope or validity of this Agreement or any other agreement between Franchisee (or its owners) and Franchisor (or any of its affiliates), or any provision of any of such agreements (including the validity and scope of the arbitration obligations under this Subsection, which the parties acknowledge is to be determined by an arbitrator and not a court); or
(d) any Operating Plan
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, the arbitration clause contains an exception. The document states that the arbitration requirement applies to all controversies, disputes, or claims between Cd One Price Cleaners and the franchisee, with the exception of what is "otherwise set forth in any other written agreement" between the franchisee (or any of its owners) and Cd One Price Cleaners (or any of its affiliates).
This means that if a separate written agreement exists between the franchisee and Cd One Price Cleaners (or its affiliates) that specifies a different method for resolving disputes, that method would take precedence over the arbitration clause in the franchise agreement. This could include agreements related to leases, financing, or other business dealings between the parties.
Prospective franchisees should carefully review all agreements they have or may enter into with Cd One Price Cleaners to understand how disputes will be resolved. It is important to understand the implications of any alternative dispute resolution methods specified in these other agreements, as they could significantly impact a franchisee's rights and options in case of a disagreement with the franchisor.