How are disputes resolved with Chocolate Bash, according to the FDD?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| u. Dispute resolution by | All disputes are resolved by arbitration (except | |
| arbitration or mediation | for injunctive relief) (subject to applicable state | |
| law). | ||
| v. Choice of forum | Arbitration will take place where our | |
| headquarters is located (currently, Yorba | ||
| Linda, California) (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 our | ||
| headquarters is then located, or if this court | ||
| lacks jurisdiction, the state courts of the state | ||
| and county where our headquarters is then | ||
| located (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, disputes are primarily resolved through arbitration. The FDD specifies that all disputes will be resolved through arbitration, except for those seeking injunctive relief, and this is subject to applicable state law. This means that instead of going to court, disagreements between the franchisee and Chocolate Bash will be settled by a neutral arbitrator.
The arbitration will take place at Chocolate Bash's headquarters, which is currently located in Yorba Linda, California, although this is also subject to applicable state law. This could mean added travel costs for franchisees who do not live near Yorba Linda. However, any legal proceedings that are not subject to arbitration will take place in the District Court of the United States in the district where Chocolate Bash's headquarters is located. If the District Court lacks jurisdiction, the legal proceedings will take place in the state courts of the state and county where Chocolate Bash's headquarters is located, also subject to applicable state law.
This mandatory arbitration clause is a fairly standard practice in franchising. It is important for a prospective Chocolate Bash franchisee to understand that they are giving up their right to sue Chocolate Bash in court for most disputes. Franchisees should consult with an attorney to fully understand the implications of agreeing to arbitration, including the cost, location, and rules of the arbitration process.