In what courts can legal actions related to the Coffee News franchise agreement be brought?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
the time period or specify geographical area of applicability in this agreement, the parties do not intend that a court be able to modify the payment terms set forth herein.
- 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 must be submitted for arbitration to the American Arbitration Association office nearest to Coffee News. These arbitration proceedings must be conducted in Bangor, Maine. This excludes actions where either party seeks injunctive relief against conduct that could cause irreparable harm, which can be pursued in court.
The arbitration will be heard by one arbitrator, following the Commercial Arbitration Rules of the American Arbitration Association. The administrative costs of the arbitration, including the arbitrator's fees, will be shared equally between Coffee News and the franchisee. Each party is responsible for covering their own attorney's fees and expenses.
Even if the parties agree that a court can modify the time period or geographical area of applicability within the agreement, the parties do not intend for a court to be able to modify the payment terms. This means that while certain aspects of the agreement can be adjusted by a court, the financial obligations outlined in the agreement are intended to remain unchanged.