Where must Cool Binz franchise disputes be submitted for binding arbitration?
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 any other agreement between the franchisee and Cool Binz must first be brought to the company's President in an attempt to resolve the dispute internally.
After exhausting this internal dispute resolution process, the FDD states that all claims or disputes between the franchisee and Cool Binz must be submitted to binding arbitration. The location for this arbitration is Ann Arbor, Michigan. The arbitration will be conducted in accordance with the American Arbitration Association’s Commercial Arbitration Rules then in effect.
This arbitration provision is subject to state law, meaning that specific state laws may impact the enforceability or application of the arbitration clause. Franchisees should be aware of the initial step of internal dispute resolution before pursuing arbitration. The requirement to arbitrate in Ann Arbor, Michigan could present a significant cost and inconvenience for franchisees located outside of Michigan.