If a dispute arises between Checkersrallys and a franchisee, where will the arbitration proceedings be held?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
18.05 Arbitration. Subject to Section 18.04, all controversies, disputes, or claims between us or any of our Affiliates, or any of their respective officers, directors, agents, employees and attorneys and you, any of your Affiliates or any of their respective Owners, arising from or relating, directly or indirectly, to (i) this Agreement or any other agreement between you and us or your or our respective Affiliates, (ii) the scope and validity of any provision of this Agreement or any other agreement between you and us or any provision of such agreements (including the validity of the arbitration obligations under this Section 18.05, which the parties acknowledge is to be determined by an arbitrator and not a court); (iii) our relationship with you, including, without limitation, your application to become a franchisee and/or to acquire the right to operate an additional Restaurant, our decision to award a franchise, approve a site or any other matter related to your franchise application or site selection process for your Franchised Restaurant or for an additional Restaurant; or (iv) any of our specifications and standards, shall on demand of either party be submitted for arbitration to the offices of the American Arbitration Association ("AAA") located closest to our corporate headquarters at the time of such demand. The arbitration shall be governed exclusively by the United
States Federal Arbitration Act (9 U.S.C. § 1, et seq.), without reference to any state arbitration statutes.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, any disputes between Checkersrallys and a franchisee will be submitted for arbitration at the American Arbitration Association (AAA) offices closest to Checkersrallys's corporate headquarters at the time of the demand for arbitration.
This means that if a franchisee has a disagreement with Checkersrallys, they may be required to travel to the location of the AAA office nearest Checkersrallys's headquarters for arbitration proceedings. Currently, Checkersrallys's corporate headquarters is in Tampa, Florida, so the arbitration would likely take place there.
It is important to note that the arbitration will be governed exclusively by the United States Federal Arbitration Act, without reference to any state arbitration statutes. This means that federal law will dictate the arbitration process, potentially preempting any state-specific laws that might otherwise apply. Franchisees should be aware of this clause as it dictates the location and legal framework for resolving disputes with Checkersrallys.