What arbitration rules govern disputes with Cool Binz?
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. |
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 from the Franchise Agreement or other agreements with Cool Binz must first be brought to the company President for internal resolution. If this process fails to resolve the issue, the matter must then be submitted to binding arbitration in Ann Arbor, Michigan.
The arbitration process will follow the American Arbitration Association's Commercial Arbitration Rules that are in effect at the time of the dispute. This means that the arbitration will be conducted according to a set of established procedures designed for commercial disputes, ensuring a structured and predictable process. This provision is subject to state law.
For a prospective Cool Binz franchisee, this means that if a disagreement arises with the franchisor that cannot be resolved informally, they will be required to participate in binding arbitration rather than pursuing a lawsuit in court (for claims subject to arbitration). The location of the arbitration, Ann Arbor, Michigan, is predetermined, which may involve travel expenses for franchisees located elsewhere. Franchisees should become familiar with the American Arbitration Association's Commercial Arbitration Rules to understand the procedures and their rights during arbitration.