Are there any exceptions to the requirement to arbitrate Deck Medic disputes?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. | Non-competition covenants during the term of the franchise | 6 | No involvement in any competitive business and must comply with confidentiality, non-disclosure and non solicitation covenants. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17 | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Operating Territory; a 25 mile radius of your Operating Territory; the Operating Territory of any other Deck Medic Business; and you must comply with confidentiality, non-disclosure and non-solicitation covenants. |
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral |
| changes that we may make to the Manuals or our unilateral | |||
| reduction of the scope of a restrictive covenant that we may | |||
| make in our discretion. | |||
| t. | Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to |
| the Franchise Agreement and the respective signed exhibits | |||
| to the Franchise Agreement are binding, subject to state law. | |||
| Nothing in any agreement is intended to disclaim the | |||
| express representations made in the Franchise Disclosure | |||
| Document, its exhibits and amendments. | |||
| u. | Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Will County, Illinois and, if mediation is unsuccessful, then to binding arbitration in Will County, Illinois. This provision is subject to applicable state law. |
| v. | Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation |
| proceedings must be conducted in, or closest to, State court | |||
| of general jurisdiction that is within or closest to Will | |||
| County, | |||
| Illinois | |||
| or, if appropriate, the United States District | |||
| Court nearest to our corporate headquarters at the time such | |||
| action is filed. This provision is subject to applicable state | |||
| law. | |||
| w. | Choice of law | 18.F. | Illinois |
| law will govern. However, this provision is subject | |||
| to state law and as otherwise disclosed in Exhibit I | |||
| to this | |||
| Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, dispute resolution generally involves non-binding mediation followed by binding arbitration in Will County, Illinois. However, there is an exception for certain claims for injunctive relief, which are not subject to mandatory mediation and arbitration. Additionally, the requirement to mediate or arbitrate is subject to applicable state law, meaning that state laws may provide further exceptions or limitations to the arbitration requirement. Any mediation, arbitration, or litigation must occur in the state court of general jurisdiction within or closest to Will County, Illinois, or the United States District Court nearest to Deck Medic's corporate headquarters when the action is filed, subject to applicable state law.
For a prospective Deck Medic franchisee, this means that while most disputes will be handled through mediation and arbitration, there are specific situations where a franchisee may be able to pursue a claim in court. Injunctive relief typically involves seeking a court order to stop someone from doing something, suggesting that Deck Medic may seek immediate court intervention to prevent a franchisee from violating the franchise agreement, such as disclosing confidential information or operating a competing business in violation of non-compete clauses.
The FDD also indicates that Illinois law governs the Franchise Agreement, but this is subject to state law and Exhibit I of the Disclosure Document. Franchisees should carefully review Exhibit I and consult with legal counsel to understand how state laws might affect the dispute resolution process and any additional rights they may have. Understanding these exceptions and the influence of state law is crucial for any potential Deck Medic franchisee when considering the franchise agreement.