Where will Chatime arbitration be conducted?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) The arbitration shall be conducted in New York, New York, and parties and witnesses may appear by videoconference, unless the parties agree otherwise.
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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.
- Clause 16.3(2) of the Franchise Agreement, and if applicable Clause 14.3(2) of the Multi-Unit Development Agreement, is hereby deleted in its entirety, and replaced with the following:
The site of the arbitration shall be agreeable by all parties and may not be remote from the franchisee's place of business. The parties and witnesses may appear by videoconference unless the parties agree otherwise.
In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime FDD, the location of arbitration depends on the state where the franchise is purchased and the specific agreements made. Generally, the arbitration will be conducted in New York, New York. Parties and witnesses have the option to appear by videoconference, unless both parties agree otherwise. The Federal Arbitration Act governs the arbitration process, and the rules of the American Arbitration Association (AAA) will be followed.
However, there are exceptions for franchisees in certain states. For a franchise purchased in Washington, the arbitration site will be 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. For franchisees in North Dakota, the arbitration site must be agreeable to all parties and cannot be remote from the franchisee's place of business, with the option for parties and witnesses to appear by videoconference unless otherwise agreed.
For franchisees in Illinois, any provision in the franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Prospective franchisees should carefully review the specific addenda and clauses in the Franchise Agreement applicable to their state to understand their rights and obligations regarding arbitration.