For Checkersrallys franchises in California, what is the location of arbitration proceedings as specified in the Franchise Agreement and Development Agreement?

According to Checkersrallys's 2025 Franchise Disclosure Document, the Franchise Agreement and Development Agreement require binding arbitration. For California franchisees, the arbitration will occur in the State of Florida, with the costs being borne as provided in those Agreements.

Checkersrallys encourages prospective franchisees to consult with legal counsel to determine the applicability of California and federal laws, such as California Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act, to any provisions of a franchise agreement restricting venue to a forum outside the State of California.

This means that if a dispute arises that leads to arbitration, a Checkersrallys franchisee in California may be required to travel to Florida for the proceedings. Additionally, they will need to factor in the costs associated with arbitration as outlined in the Franchise and Development Agreements, which could include legal fees, travel expenses, and other related costs. The franchisee should seek legal advice to understand how California and federal laws might impact the enforceability of these venue and cost provisions.