Where in the Counselor Realty franchise agreement can I find information about arbitration?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
10. RESOLUTION OF DISPUTES.
- 10.1 Arbitration. Except as provided below, any dispute arising under or in relation to this Agreement shall be resolved by binding arbitration by the National Center for Dispute Settlement, under its rules for expedited commercial arbitration, in Minneapolis, Minnesota. Each claim or controversy will be arbitrated by Franchisee on an individual basis, and will not be consolidated in any arbitration action with the claim of any other franchisee. The award of the arbitrators is final and binding on all parties. The arbitrators may issue appropriate orders as well as award monetary (but not exemplary or punitive) damages. The prevailing party will be entitled to recover its costs including its reasonable attorneys' fees. We may sue to collect money owed to us, to protect or enforce our rights in the Marks, or to compel inspections or audits.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the information regarding dispute resolution through arbitration is detailed in Section 10.1 of the Franchise Agreement. This section specifies that any dispute arising from the agreement will be resolved through binding arbitration managed by the National Center for Dispute Settlement, utilizing its expedited commercial arbitration rules. The arbitration proceedings will take place in Minneapolis, Minnesota.
For a prospective Counselor Realty franchisee, this means that if any disagreements or conflicts arise with Counselor Realty related to the franchise agreement, they will be required to resolve it through arbitration rather than through traditional court litigation. Each franchisee's claim will be handled individually and not consolidated with claims from other franchisees in a single arbitration action. The arbitrator's decision will be final and legally binding for all involved parties.
The arbitrator has the authority to issue orders and award monetary damages, but is restricted from awarding exemplary or punitive damages. The prevailing party in the arbitration is entitled to recover their costs, including reasonable attorney's fees. However, Counselor Realty retains the right to pursue legal action in court to collect money owed, protect its trademark rights, or enforce inspections and audits.
This arbitration clause is a common feature in franchise agreements, designed to provide a quicker and more cost-effective means of resolving disputes compared to litigation. However, franchisees should be aware that arbitration decisions are generally final and have limited grounds for appeal. Prospective franchisees should carefully review this section with legal counsel to fully understand their rights and obligations regarding dispute resolution with Counselor Realty.