Are there any exceptions to the dispute resolution process for Chocolate Bash?
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, all disputes are resolved through arbitration, except for actions seeking injunctive relief. This means that if Chocolate Bash or a franchisee seeks a court order to stop someone from doing something (injunctive relief), that particular legal action does not have to go through arbitration. However, this is subject to applicable state law, which may impose additional requirements or limitations.
Arbitration for Chocolate Bash will take place at the company's headquarters, which is currently located in Yorba Linda, California. This location is also subject to applicable state law. Any legal proceedings that are not subject to arbitration will occur 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 proceedings will take place in the state courts of the state and county where Chocolate Bash's headquarters is located. Again, this is subject to applicable state law.
This means that a Chocolate Bash franchisee may be required to travel to California to resolve disputes through arbitration or in court, which could increase costs. The franchisee should consult with a legal professional to understand the implications of the dispute resolution process, including the choice of forum and choice of law, considering the laws of their own state.