Does the Coffee News agreement require arbitration for all controversies, disputes, or claims?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration.
Except for obtaining injunctive relief by either party against actual or threatened conduct that would cause irreparable harm to that party, all controversies, disputes or claims arising under this Agreement between Franchisor and Franchisee shall be submitted for arbitration to the Office of the American Arbitration Association nearest to Franchisor on demand of either Franchisor or Franchisee.
Such arbitration proceedings shall be conducted in Bangor, Maine.
Except as otherwise provided in this Agreement, such claims shall be heard by one arbitrator in accordance with the then Current Commercial Arbitration Rules of the American Arbitration The administrative cost of the arbitration, including the cost of the Association. arbitrator, shall be borne equally by the parties.
Each party shall be responsible for the payment of its own attorneys' fees and expenses.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchise agreement mandates arbitration for most disputes. Specifically, any controversies, disputes, or claims arising under the agreement between Coffee News and the franchisee must be submitted for arbitration. This arbitration will be handled by the American Arbitration Association office nearest to Coffee News.
The arbitration proceedings will take place in Bangor, Maine, and be overseen by a single arbitrator, following the American Arbitration Association's current Commercial Arbitration Rules. The costs associated with the arbitration, including the arbitrator's fees and administrative expenses, will be equally shared between Coffee News and the franchisee. Each party is responsible for covering their own attorney's fees and expenses.
However, there is an exception to this arbitration requirement. Either Coffee News or the franchisee can seek injunctive relief in court against conduct that threatens to cause irreparable harm. This means that if one party believes the other is taking actions that could cause significant and irreversible damage, they can go to court to seek an immediate order to stop the harmful behavior, rather than waiting for arbitration.