Where will the arbitration take place in a dispute between Chicken Guy and the franchisee?

According to Chicken Guy's 2025 Franchise Disclosure Document, any arbitration proceedings between Chicken Guy and a franchisee will occur in the city where Chicken Guy's principal offices are located at the time the demand for arbitration is filed. The arbitrator does not have the authority to select a different location. This applies to all disputes, controversies, or claims between the parties and their affiliates arising out of the franchise agreement, the relationship between the parties, the scope and validity of the agreement, or any aspect of the Chicken Guy system.

This means that a franchisee, regardless of their location, may be required to travel to the city where Chicken Guy's principal offices are located for arbitration. This could involve significant travel expenses and logistical challenges for the franchisee. It is a standard practice in franchising for the arbitration to occur at the franchisor's principal place of business.

It is important to note that all matters relating to arbitration will be governed by the Federal Arbitration Act. However, if a court or arbitrator determines that the arbitration clause is unenforceable, the dispute will be resolved in a judicial proceeding as per Section 31 of the agreement, excluding the arbitration section. Franchisees should be aware of this clause and its implications for dispute resolution.