Where must any controversy or claim related to the Cool Binz Release be litigated?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
r rights to arbitration. Each party shall bear its own cost of arbitration and you and we shall share costs of the arbitrator equally. This agreement to arbitrate shall survive any termination or expiration of this Agreement.
- a. Notwithstanding the foregoing, we shall not be required to arbitrate, and may initiate litigation in court, in accordance with the procedure set forth in Section 15 F.3, any controversy, dispute, or claim as set forth in this Section 15.F.2 if such controversy, dispute, or claim concerns an allegation that you have violated (or threaten to violate, or pose an imminent risk of violating):
-
- Any federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information;
-
- Any claims pertaining to or arising out of any warranty issue;
-
- Any of the restrictive covenants contained in this Agreement;
-
- Any claims arising out of or related to fraud or misrepresentation by you or your insolvency; or
-
- Any claims where the damages alleged are less than $50,000.
-
-
- Selection of Venue. Nothing contained in this Agreement
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, at the franchisor's option, certain claims do not require arbitration and may be litigated in court. Specifically, Cool Binz can initiate litigation in court for controversies, disputes, or claims related to a franchisee violating or threatening to violate federally protected intellectual property rights, warranty issues, restrictive covenants, fraud, misrepresentation, insolvency, or claims where the alleged damages are less than $50,000.
However, the FDD does not specify the exact venue or location where such litigation would take place. The document only states that Cool Binz may seek emergency relief from "any court having jurisdiction" to protect their interests, but it does not define which courts would have jurisdiction over specific types of disputes.
A prospective Cool Binz franchisee should clarify with the franchisor which specific courts would be used for litigation, as the FDD does not provide this information. Understanding the venue for potential litigation is crucial, as it can significantly impact the cost and convenience of resolving disputes.