In Michigan, can the Chicken Guy franchise agreement require arbitration or litigation to be conducted outside of Michigan?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Sections 31.A & 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. |
| v. Choice of forum | Section 31.D. | Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
Based on the 2025 Chicken Guy Franchise Disclosure Document, the franchise agreement outlines dispute resolution procedures. Specifically, Section 31.A & B states that, subject to state law, either party can submit claims to non-binding mediation and then arbitration, which will occur in the city where Chicken Guy's principal offices are located (currently Orlando, Florida). Section 31.D. also indicates that, subject to state law, any actions for injunctive relief must be filed in the jurisdiction where Chicken Guy's principal offices are located, which is also Orlando, Florida. These stipulations are subject to state law, meaning that Michigan law could potentially override these provisions.
However, the provided excerpts do not contain specific addenda or modifications to Item 17 of the Chicken Guy franchise agreement that are required for Michigan franchisees. The FDD excerpts include addenda for franchisees in Illinois, Maryland, Minnesota, and New York, addressing issues such as choice of law, forum, and waivers, but there is no similar addendum presented for Michigan.
Therefore, it is not possible to definitively determine whether the Chicken Guy franchise agreement can require arbitration or litigation to be conducted outside of Michigan based solely on the provided excerpts. A prospective franchisee should ask Chicken Guy to provide any Michigan-specific addenda or modifications to the franchise agreement that address dispute resolution and choice of venue to fully understand their rights under Michigan law.