What is the required action if either party to the Coffee News agreement seeks to change the agreement?
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)
Based on the 2025 Coffee News Franchise Disclosure Document, any controversies, disputes, or claims arising under the Franchise Agreement between the Franchisor and Franchisee, with the exception of actions seeking injunctive relief against conduct causing irreparable harm, must be submitted for arbitration. This arbitration will be managed by the American Arbitration Association office nearest to the Franchisor.
The arbitration proceedings are to be held in Bangor, Maine, and will be overseen by a single arbitrator following the American Arbitration Association's current Commercial Arbitration Rules, unless the agreement specifies otherwise. 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 associated expenses during the arbitration process. This means that while Coffee News and the franchisee will split the direct costs of the arbitration itself, they will each bear the burden of their legal representation costs. Prospective franchisees should consider these factors when evaluating the potential costs of resolving disputes with Coffee News.