What is the impact on the Coffee News franchisee's obligations if there is a dispute or arbitration?
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 the franchisor and franchisee, except those seeking injunctive relief for conduct causing irreparable harm, will be submitted for arbitration to the American Arbitration Association office nearest to the franchisor, upon demand by either party. This arbitration will take place in Bangor, Maine.
The document specifies that a single arbitrator will hear claims according to the American Arbitration Association's current Commercial Arbitration Rules, unless the agreement states otherwise. The administrative costs of 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 associated expenses.
This means that a Coffee News franchisee involved in a dispute will need to participate in arbitration proceedings, potentially incurring costs for arbitration administration and their own legal representation. The location of arbitration in Bangor, Maine, may also require the franchisee to travel, adding to the overall expense. The franchisee should factor in these potential costs and time commitments when evaluating the franchise opportunity.