Can the Deer Solution Franchisee demand arbitration?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
n acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to the Deer Solution Franchising LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Deer Solution Franchising LLC | Franchisee: | |
|---|---|---|
| Signature | Signature | |
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
MARYLAND FRANCHISE AGREEMENT AMENDMENT
Amendments to the Deer Solution Franchise Agreement
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Deer Solution Franchising LLC Franchise Agreement (the "Franchise Agreement"), as follows:
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- The Franchise Agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
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- The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:
- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be amended by the addition of the following statement added to Article 18.I.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the ability of a franchisee to demand arbitration is subject to certain state laws. For instance, the Maryland Franchise Agreement Amendment indicates that while the standard agreement provides for dispute resolution through arbitration, a Maryland regulation exists that considers it unfair to require a franchisee to waive their right to file a lawsuit in Maryland for violations of Maryland franchise law. This raises a dispute about the enforceability of the forum selection requirement, especially considering the Federal Arbitration Act. The amendment clarifies that a franchisee can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, overriding the arbitration clause in this specific instance.
Similarly, the Illinois Franchise Agreement Amendment states that any provision designating jurisdiction and venue outside of Illinois is void, although the agreement can still provide for arbitration outside of Illinois. This suggests that while Deer Solution may include an arbitration clause, its enforceability depends on whether it conflicts with Illinois law regarding jurisdiction and venue. The North Dakota Franchise Investment Law also influences this, determining that requiring arbitration or mediation at a location remote from the franchisee's business is unfair. The site of arbitration or mediation must be agreeable to all parties and not remote from the franchisee's place of business.
Finally, in Washington, any arbitration or mediation involving a franchise purchased in Washington will occur either in Washington, or in a place mutually agreed upon at the time of the arbitration or mediation. Therefore, a Deer Solution franchisee's ability to demand arbitration, and the conditions surrounding it, are heavily influenced by the specific state laws where the franchise operates, potentially modifying or superseding the standard franchise agreement.