Where will arbitration and mediation proceedings be conducted for Chem Dry franchisees in North Dakota?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Section 17 of the Franchise Agreement is amended by adding the following language:
- A. Any provision of the Agreement which requires the Franchisee to consent to waiver of exemplary and punitive damages is unenforceable pursuant to Section 51-19- 09 of the North Dakota Franchise Investment Law.
- B. Arbitration and mediation proceedings will be conducted at a site agreeable to all parties.
- C. The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorneys' fees.
- D. The venue of any litigation arising out of the franchise relationship between Franchisee and CDI will be within the state of North Dakota.
- E. Both Franchisor and Franchisee will be allowed the option of a jury trial.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, for franchisees in North Dakota, the location of arbitration and mediation proceedings will be at a site agreeable to all parties involved. This is a modification to Section 17 of the standard Chem Dry Franchise Agreement.
This means that if a Chem Dry franchisee in North Dakota has a dispute with Chem Dry that goes to arbitration or mediation, the proceedings will not automatically be held at a location chosen solely by Chem Dry. Instead, the franchisee has a say in where the proceedings take place, and all parties must agree on the location.
This provision is more favorable for the franchisee compared to standard franchise agreements, where the franchisor often dictates the location of dispute resolution proceedings. It gives the Chem Dry franchisee in North Dakota more leverage to ensure a fair and convenient location for resolving disputes. Furthermore, the venue of any litigation arising out of the franchise relationship between the Franchisee and CDI will be within the state of North Dakota.
It is important for prospective Chem Dry franchisees in North Dakota to understand this addendum, as it modifies the standard terms of the Franchise Agreement and provides additional protections and rights under North Dakota law.