What is the appropriate venue for legal actions related to the Coffee News agreement?
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, any controversies, disputes, or claims arising under the Franchise Agreement between Coffee News and a franchisee will be submitted for arbitration. This arbitration will be handled by the American Arbitration Association office nearest to Coffee News.
The FDD specifies that the arbitration proceedings will be conducted in Bangor, Maine. The claims will be heard by a single arbitrator, following the Commercial Arbitration Rules of the American Arbitration Association that are current at the time of the proceedings. The administrative costs of the arbitration, including the arbitrator's fees, will be equally shared between Coffee News and the franchisee.
Each party is responsible for covering their own attorney's fees and expenses related to the arbitration. The document does state an exception: either Coffee News or the franchisee can seek injunctive relief against conduct that threatens to cause irreparable harm, without going through arbitration. This means that if one party believes they will suffer immediate and significant damage, they can go to court to seek an order to prevent the harmful conduct.