Where is the jurisdiction and venue for proceedings not subject to arbitration for Cool Binz?
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):
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- Any federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information;
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- Any claims pertaining to or arising out of any warranty issue;
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Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz is not required to arbitrate certain disputes and may initiate litigation in court, in accordance with the procedure set forth in Section 15 F.3. However, the document does not specify the jurisdiction or venue for such litigation.
Specifically, Cool Binz is not required to arbitrate claims involving violations (or threatened violations) of federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information. They also need not arbitrate claims pertaining to or arising out of any warranty issue, any of the restrictive covenants contained in the Agreement, claims arising out of or related to fraud or misrepresentation by the franchisee or their insolvency, or any claims where the damages alleged are less than $50,000.
While the FDD outlines circumstances where Cool Binz can pursue litigation instead of arbitration, it does not state where such lawsuits must be filed. A prospective franchisee should clarify with Cool Binz where the jurisdiction and venue would be for any court proceedings not subject to arbitration.