Where will arbitration occur if required by the Deck Medic franchise agreement, and who bears the costs?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the location of arbitration proceedings depends on the state where the franchise is purchased. For instance, if a franchise is purchased in Washington, the arbitration or mediation site will be in Washington, or in a place mutually agreed upon by both parties at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
For franchisees in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
The FDD does not specify who bears the costs of arbitration. A prospective franchisee should seek clarification from Deck Medic regarding the allocation of arbitration costs.