In the Coffee News franchise agreement, where will the arbitration proceedings be conducted?
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, arbitration proceedings between the franchisor and franchisee will be conducted in Bangor, Maine. This applies to all controversies, disputes, or claims arising under the franchise agreement, except for actions where either party seeks injunctive relief to prevent irreparable harm.
This means that if a Coffee News franchisee has a dispute with the franchisor that cannot be resolved informally, the franchisee will likely need to travel to Bangor, Maine, to participate in arbitration. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of a dispute and makes a decision that is often binding.
The FDD specifies that the arbitration will be submitted to the Office of the American Arbitration Association nearest to the Franchisor and conducted according to the then-current Commercial Arbitration Rules of the American Arbitration Association. The administrative costs and arbitrator fees will be shared equally between Coffee News and the franchisee, while each party is responsible for their own attorney's fees and expenses. Prospective franchisees should consider the potential costs and logistical challenges associated with arbitrating in Bangor, Maine, when evaluating the Coffee News franchise opportunity.