Where will the arbitration proceedings be conducted for disputes involving Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Arbitration. Subject to Section 22.A., Chicken Guy and Developer agree that all controversies, disputes, or claims between the parties and their respective affiliates, owners, shareholders, officers, directors, agents, and/or employees arising out of or related to: (1) this Agreement; (2) the relationship between the parties; (3) the scope and validity of this Agreement or any provision of this Agreement (including the validity and scope of the arbitration obligations under this Section 22.B., which the parties acknowledge is to be determined by an arbitrator and not a court); or (4) any aspect of the System or any System standard must be submitted for binding arbitration, on demand of either party, to the AAA and in accordance with its then-current rules for commercial arbitration. The arbitration proceedings will be conducted by a single arbitrator. The arbitration will take place in the city where Chicken Guy's principal offices are located at the time the demand for arbitration is filed. The arbitrator will have no authority to select a different hearing locale other than as described in the prior sentence. All matters
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, arbitration proceedings will occur in the city where Chicken Guy's principal offices are located when the demand for arbitration is filed. The arbitrator does not have the authority to select a different hearing location. This is a standard clause in franchise agreements, as it ensures consistency and predictability in dispute resolution.
This means that if a franchisee has a dispute with Chicken Guy that goes to arbitration, they will likely need to travel to the city where Chicken Guy's main offices are located. This could create additional expenses for the franchisee, such as travel and accommodation costs. Franchisees should consider this potential cost when evaluating the franchise opportunity.
Furthermore, the FDD states that all matters relating to arbitration will be governed by the Federal Arbitration Act and not by any state arbitration law. This ensures that the arbitration process is consistent across all franchise locations, regardless of the state in which the franchise operates. Franchisees should be aware of the implications of the Federal Arbitration Act and how it may affect their rights in the event of a dispute with Chicken Guy.