Where will arbitration take place for Chocolate Bash disputes?

According to Chocolate Bash's 2024 Franchise Disclosure Document, arbitration will take place at the location of Chocolate Bash's headquarters. Currently, the headquarters is located in Yorba Linda, California. This is subject to applicable state law. Any legal proceedings not subject to arbitration will take place in the District Court of the United States, in the district where Chocolate Bash's headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is then located, also subject to applicable state law.

This means that if a Chocolate Bash franchisee has a dispute with the company that proceeds to arbitration, the franchisee will likely need to travel to Yorba Linda, California, regardless of where their franchise is located. This could involve significant travel expenses and logistical challenges for franchisees located far from California. Franchisees should factor these potential costs into their assessment of the franchise opportunity.

It is important to note the phrase "subject to applicable state law" which appears multiple times in the disclosure. Certain state laws may override the franchise agreement's stipulations regarding dispute resolution, choice of forum, or choice of law. Prospective franchisees should consult with a legal professional to understand how these provisions may be interpreted and enforced in their specific state. This is a common clause in franchise agreements, as federal law requires franchisors to comply with state-specific franchise laws.