Where must arbitration for disputes with Cool Binz be conducted?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| with any of your customers or former customers, within: (i) the | |||
| Territory; (ii) the Territories of any COOL BINZ franchisees, | |||
| COOL BINZ Company Store, or any other COOL BINZ business | |||
| operator; or (iii) a radius of 50 miles from the Territory. This | |||
| provision is subject to state law. | |||
| s. | Modification | Section 15.J | Modification of the Franchise Agreement must be in writing and |
| of Agreement | agreed upon by both parties. | ||
| t. | Integration/me rger clause | Section 15.L | Only the terms of the Franchise Agreement are binding (subject to state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable. Nothing in the agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. |
| u. | Dispute resolution by arbitration | Sections 15.F.1 and 15.F.2 | You must bring any disputes arising out of the Franchise Agreement or any other agreement with us to our President prior to bringing a claim before any third party in an attempt to resolve the dispute internally. After exhaustion of this internal dispute resolution procedure, all claims or disputes between you and us must be submitted to binding arbitration in Ann Arbor, Michigan, in accordance with the American Arbitration Association’s Commercial Arbitration Rules then in effect. This provision is subject to state law. |
| v. | Choice of forum | Section 15.F.3 | All claims not subject to arbitration must be commenced in the state, or federal court of general jurisdiction in Washtenaw County, Michigan or the United States District Court for the Eastern District of Michigan (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–58)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, any disputes arising out of the Franchise Agreement or any other agreement with Cool Binz must first be brought to their President in an attempt to resolve the dispute internally. After exhausting this internal procedure, all claims or disputes between a franchisee and Cool Binz must be submitted to binding arbitration in Ann Arbor, Michigan, in accordance with the American Arbitration Association’s Commercial Arbitration Rules then in effect. This arbitration provision is subject to state law.
This means that if a Cool Binz franchisee has a dispute with the company that cannot be resolved informally, the franchisee will be required to participate in binding arbitration in Ann Arbor, Michigan. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of the argument and makes a decision that is legally binding. This process can be less expensive and time-consuming than going to court, but the franchisee gives up the right to a trial by judge or jury.
It is fairly common in franchise agreements to include a clause requiring arbitration for dispute resolution, as it offers a more streamlined and cost-effective way to handle disagreements. However, franchisees should be aware of the implications of agreeing to arbitration, including the limited scope for appeal. The FDD also states that any claims not subject to arbitration must be commenced in the state, or federal court of general jurisdiction in Washtenaw County, Michigan or the United States District Court for the Eastern District of Michigan (subject to applicable state law).
Prospective Cool Binz franchisees should carefully consider the implications of the arbitration and forum selection clauses, as they will be bound by these terms if they sign the Franchise Agreement. It is advisable to seek legal counsel to fully understand their rights and obligations under the agreement.