Under what organization's auspices will arbitration occur for Cool Binz disputes?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
al dispute resolution procedure before you may bring your dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
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- Arbitration. At our option, all claims or disputes between us, our shareholders, officers, directors, agents and employees and you, arising out of, or in any way relating to, this Agreement or any other agreement by and between you and us or our affiliates, or any of the parties' respective rights and obligations arising from such agreement, or the operation of the COOL BINZ Business which are not first resolved through the internal dispute resolution procedure set forth in Section 15.F.1 above, must be submitted to binding arbitration in Ann Arbor, Michigan under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Arbitration Rules then in effect, with an arbitrator with at least five (5) years of franchise law experience. We may specifically enforce our 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, any claims or disputes that arise between Cool Binz and a franchisee, or related parties, will be submitted to binding arbitration under the auspices of the American Arbitration Association (AAA). This arbitration will take place in Ann Arbor, Michigan, and will follow the AAA's Commercial Arbitration Rules that are in effect at the time. The arbitrator selected must have a minimum of five years of experience in franchise law.
This means that if a Cool Binz franchisee has a disagreement with the franchisor that cannot be resolved through the internal dispute resolution process, the dispute will be settled through arbitration rather than in court, provided Cool Binz elects for arbitration. Arbitration is a process where a neutral third party hears both sides of a dispute and makes a decision that is binding on both parties. The location of the arbitration in Ann Arbor, Michigan, may require the franchisee to travel, incurring travel costs.
However, Cool Binz is not required to arbitrate certain disputes and may instead initiate litigation in court. These exceptions include allegations of violations of intellectual property rights, warranty issues, restrictive covenants, claims related to fraud or misrepresentation by the franchisee, insolvency, or claims where the alleged damages are less than $50,000. Each party is responsible for their own arbitration costs, while the costs of the arbitrator will be shared equally between Cool Binz and the franchisee. This agreement to arbitrate survives any termination or expiration of the Franchise Agreement.