According to the Deer Solution agreement, what disputes are subject to arbitration?

According to the 2025 Deer Solution Franchise Disclosure Document, the franchise agreement stipulates that disputes are generally resolved through arbitration. However, this is subject to certain state-specific regulations. For example, a Maryland franchise regulation states that requiring a franchisee to waive their right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law is an unfair or deceptive practice. This creates a dispute as to whether the forum selection requirement is legally enforceable due to the Federal Arbitration Act. Therefore, a franchisee in Maryland may bring a lawsuit for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of the arbitration clause.

Similarly, in North Dakota, any provision requiring arbitration or mediation at a location remote from the franchisee's business site is considered unfair. The arbitration or mediation site must be agreeable to all parties and not remote from the franchisee's place of business. Additionally, any provision designating jurisdiction or venue outside of North Dakota is void concerning any cause of action enforceable in North Dakota. These regulations protect franchisees from being forced into unfavorable arbitration terms or locations.

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. These state-specific amendments highlight the importance of understanding the local laws that govern the franchise agreement, as they can significantly impact the enforceability of certain clauses, including those related to arbitration.