In which courts can legal actions related to the Coffee News agreement be brought?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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, disputes between Coffee News and a franchisee will be settled through arbitration, except when either party seeks injunctive relief to prevent irreparable harm. The arbitration will occur at the American Arbitration Association office closest to Coffee News's location.
Specifically, the FDD states that arbitration proceedings will be conducted in Bangor, Maine. A single arbitrator will hear the claims based on the American Arbitration Association's current Commercial Arbitration Rules. The costs for the arbitrator and administration will be split equally between Coffee News and the franchisee. Each party is responsible for covering their own attorney's fees and associated expenses.
This arbitration clause means that franchisees may be required to travel to Bangor, Maine, for arbitration, which could increase their legal expenses. Franchise agreements commonly include clauses specifying the venue for dispute resolution, which can impact a franchisee's costs and convenience when resolving disputes with the franchisor.