Where will arbitration occur for Deer Solution franchise disputes, and who bears the costs?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 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.
- D. Any provision in the Franchise Agreement requiring a franchisee to agree to the arbitration or mediation of disputes at a location that is remote from the site of the franchisee's business has been determined to be unfair, unjust, and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The site of arbitration or mediation must be agreeable to all parties and may not be remote from the franchisee's place of business.
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 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the location of arbitration or mediation for franchises purchased in Washington will be in the state of Washington, a place mutually agreed upon at the time of arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
For franchisees in North Dakota, any provision in the Franchise Agreement 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 cannot be remote from the franchisee's place of business.
For Illinois, the Franchise Agreement may provide for arbitration to take place outside of Illinois, even though Illinois law governs the Franchise Agreement. The FDD excerpts do not specify who bears the costs of arbitration. A prospective franchisee should seek clarification from Deer Solution regarding the allocation of arbitration costs.