If a dispute with Chop5 Salad Kitchen involves an Excluded Claim, can a lawsuit be filed?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22.3. Litigation. If a Dispute involves an Excluded Claim, then either party may file a lawsuit in any state or federal court of general jurisdiction in accordance the choice of venue provision set forth below. The parties hereby express their clear and unequivocal intent that a court, rather than a
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, if a dispute involves an Excluded Claim, either party has the option to file a lawsuit. This lawsuit can be pursued in any state or federal court that has general jurisdiction, provided it aligns with the venue selection provision outlined in the agreement.
Specifically, the FDD states that disputes categorized as Excluded Claims are not subject to mandatory negotiation, mediation, or arbitration. This means that Chop5 Salad Kitchen franchisees have the right to bypass these alternative dispute resolution methods and directly pursue litigation if the dispute falls under the definition of an Excluded Claim.
The document emphasizes the clear intent of both parties that a court, rather than an arbitrator, should handle Excluded Claims. This provision ensures that certain types of disputes, particularly those involving breaches of specific sections of the agreement (§14 and/or §17), can be addressed through the court system, offering a potentially different avenue for resolution compared to mediation or arbitration.