Where will the arbitration proceedings for Chem Dry disputes be conducted?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE and CDI agree that, except for (i) matters covered by Section 17.G. and (ii) controversies, disputes, or claims related to or based on actual or potential improper use of the Marks or unauthorized use or disclosure of Confidential Information, all controversies, disputes or claims between CDI and its affiliates, and its and their respective shareholders, officers,
directors, agents, and/or employees, and FRANCHISEE (and/or its Owners, Guarantors, affiliates, and/or employees) arising out of or related to:
a. this Agreement or any other agreement between the parties or any provision of such agreements;
b. the relationship of the parties hereto;
c. the validity of this Agreement or any other agreement between the parties or any provision of such agreements; or
d. any System Standard shall be submitted for binding arbitration to the American Arbitration Association on demand of either party.
Such arbitration proceedings shall be conducted by a single arbitrator in the English language at a location chosen by the arbitrator in Nashville, Tennessee and, except as otherwise provided in this Agreement, shall be heard in accordance with the then current commercial arbitration rules of the American Arbitration Association.
All matters within the scope of the Federal Arbitration Act (9 U.S.C. 1 et seq.) shall be governed by it.
Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, arbitration proceedings between Chem Dry and a franchisee will be conducted in Nashville, Tennessee. The proceedings will be managed by a single arbitrator and held in English, following the American Arbitration Association's commercial arbitration rules. This applies to disputes arising from the franchise agreement, the relationship between the parties, the validity of the agreement, or any System Standard, except for matters involving improper use of the Chem Dry marks or unauthorized disclosure of confidential information, which are not subject to this arbitration clause.
This means that if a Chem Dry franchisee has a dispute with the company that isn't related to trademark or confidential information issues, they will likely have to travel to Nashville, Tennessee for arbitration. Franchisees should be aware of this requirement, as it could involve significant travel expenses and time away from their business. The agreement specifies that the arbitrator will select the location within Nashville, providing some flexibility but still requiring the franchisee to be present in that city.
It's also important to note that the Federal Arbitration Act governs these proceedings, and any judgment on the arbitrator's award can be entered in a court with the appropriate jurisdiction. This ensures that the arbitration decision is legally binding and enforceable. Franchisees should consider the potential costs and logistical challenges associated with arbitrating in Nashville when evaluating the Chem Dry franchise opportunity.