What happens if the arbitration clause is deemed null and void for a Chem Dry franchise?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
The parties further agree that if this Paragraph is held by any court, agency or tribunal with competent jurisdiction to be: (a) invalid, (b) contrary to, or (c) in conflict with, any applicable present or future law or regulation, the entire Section 17.F. will be deemed null and void and the dispute resolution shall be governed by Section 17.I.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, if a court, agency, or tribunal with competent jurisdiction deems the paragraph regarding arbitration on an individual basis to be invalid, contrary to, or in conflict with any applicable present or future law or regulation, then the entire Section 17.F. will be considered null and void. In this case, the dispute resolution will then be governed by Section 17.I. of the Chem Dry franchise agreement.
This means that the standard process of individual arbitration would be bypassed, and Section 17.I would dictate how disputes between Chem Dry and the franchisee are resolved. Franchisees should carefully review Section 17.I to understand the alternative dispute resolution methods that would apply if the individual arbitration clause is invalidated.
It is important for prospective Chem Dry franchisees to understand the implications of both the arbitration clause and the alternative dispute resolution methods outlined in Section 17.I. Consulting with legal counsel can help clarify these provisions and their potential impact on the franchisee's rights and obligations.