Does the agreement to attempt internal dispute resolution with Cool Binz survive the termination or expiration of the Franchise Agreement?

According to Cool Binz's 2025 Franchise Disclosure Document, the agreement to arbitrate survives any termination or expiration of the Franchise Agreement. Specifically, if disputes are not first resolved through the internal dispute resolution procedure, they must be submitted to binding arbitration in Ann Arbor, Michigan. This arbitration will occur under the rules of the American Arbitration Association (AAA), using an arbitrator with at least five years of franchise law experience.

Cool Binz retains the option to enforce its rights to arbitration. The franchisee and Cool Binz will equally share the costs of the arbitrator, while each party bears its own additional arbitration costs.

However, Cool Binz is not required to arbitrate in certain situations and may initiate litigation in court. These situations include allegations that the franchisee has violated intellectual property rights, warranty issues, restrictive covenants, claims related to fraud or insolvency, or claims where the damages alleged are less than $50,000.