Where will mediation and arbitration take place for disputes related to the Chicken Guy Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the development term | Section 1.A. | The term is from the date of execution of the Development Agreement to the date that you sign a lease or purchase the site for the last Franchised Restaurant that you are required to develop under the Development Schedule. |
| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
| r. Non-competition covenants after the franchise is terminated or expires | Section 12.C. | No activity as described in q. above for one year within your Development Territory, within two miles of its border and within two miles of any then- existing Chicken Guy! Restaurant. If you violate the post-termination non-competition provisions, you must pay liquidated damages equal to our then- current Initial Franchise Fee and 8% of the Gross Sales of the competing business until the expiration of the non-competition period (subject to state law). |
| s. Modification of the | Section 20 | No modification generally without signed |
| agreement | agreement, but we may modify the System. | |
| t. Integration/merger clause | Section 20 | Only the terms of the Development Agreement are binding (subject to state law). Any representations or promises made outside this disclosure document and the Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Sections 22A. & B. | Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, mediation and arbitration for disputes arising from the Development Agreement will take place in Orlando, Florida. Specifically, the FDD states that the location will be the city where Chicken Guy's principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida. This applies subject to state law.
This means that if a dispute arises between a developer and Chicken Guy, both parties will be required to participate in non-binding mediation, and if that is unsuccessful, arbitration in Orlando, Florida. This location is where Chicken Guy's principal offices are located at the time of filing.
It's important to note that these dispute resolution procedures are subject to state law, which could potentially modify or supersede the agreement's terms depending on the franchisee's location. For example, the addendum for Illinois franchisees notes that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still take place outside of Illinois. Similarly, the addendum for California franchisees notes that the choice of forum provision may not be enforceable under California law. Therefore, prospective franchisees should consult with legal counsel to understand how local laws may affect the dispute resolution process.