Where will mediation be conducted for Decorating Den Interiors disputes?
Decorating_Den_Interiors Franchise · 2025 FDDAnswer from 2025 FDD Document
The site of the arbitration will be in Talbot County, Maryland.
The arbitrator will have no power or authority to diminish DDSI's exclusive right and interest in the Marks and trade secrets or to vary the terms, conditions or payments which DDSI has designated for licensing one or more of the same. A party wishing to proceed through an action, suit, or proceeding with respect to the Marks may do so without limitation, protecting any of the Marks against infringements and recovering compensation or damages for their use. The prevailing party in any such legal action will be entitled to be compensated for its attorney's fees, court costs and other reasonable expenses.
The parties hereto recognize, and any mediator, arbitrator or judge is affirmatively advised, that certain provisions of this Agreement describe the right of DDSI or Regional Director to take (or refrain from taking) certain actions in the exercise of its Reasonable Business Judgment based on its assessment of the overall best interests of the DECORATING DEN INTERIORS System. Where such discretion has been exercised, and is supported by the Reasonable Business Judgment of DDSI or Regional Director, a mediator, arbitrator or a judge shall not substitute his or her judgment for the judgment so exercised by DDSI or Regional Director.
If a party to this Agreement fails to adhere to the agreed upon dispute resolution remedies in the sequence herein provided, it shall reimburse the non-violating party(ies) its or their court costs, attorney's fees and other legal expenses reasonably incurred in the enforcement of these dispute resolution remedies.
Source: Item 22 — Contracts (FDD pages 59–60)
What This Means (2025 FDD)
According to Decorating Den Interiors' 2025 Franchise Disclosure Document, the site of arbitration, which is a method of dispute resolution, will be in Talbot County, Maryland. This means that if a Decorating Den Interiors franchisee has a dispute with the franchisor that proceeds to arbitration, the proceedings will take place in Talbot County, Maryland.
This location is significant because it may require franchisees to travel to Maryland for arbitration hearings, potentially incurring travel and accommodation costs. It is also important to note that the arbitrator's authority is limited, particularly concerning Decorating Den Interiors' rights to its Marks and trade secrets. The arbitrator cannot diminish Decorating Den Interiors' exclusive rights or vary the terms and conditions related to licensing these Marks.
Furthermore, the FDD states that if a party fails to adhere to the agreed-upon dispute resolution methods, they will be responsible for reimbursing the non-violating party's legal costs, including attorney's fees and court costs. This provision encourages adherence to the dispute resolution process outlined in the franchise agreement. The document also advises any mediator, arbitrator, or judge to recognize Decorating Den Interiors' right to make decisions based on its reasonable business judgment, and they should not substitute their judgment for that of Decorating Den Interiors or its Regional Director when such discretion has been exercised.