If the Deer Solution Franchise Agreement requires binding arbitration, where will the arbitration occur?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
quitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
B. Any provision requiring a franchisee to consent to termination or liquidation damages has been determined to be unfair, unjust, and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
C. Covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statute, are unfair, unjust, and inequitable. Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota.
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.
E. Any provision in the Franchise Agreement which designates jurisdiction or venue or requires the franchisee to agree to jurisdiction or venue in a forum outside of North Dakota is void with respect to any cause of action which is otherwise enforceable in North Dakota.
F.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the location of arbitration for Deer Solution franchisees may vary depending on the state in which the franchisee operates. For instance, in North Dakota, any provision requiring arbitration or mediation at a location remote from the franchisee's business is considered unfair. The arbitration or mediation site must be agreeable to all parties and near the franchisee's place of business.
For Illinois franchisees, the Franchise Agreement may allow arbitration to occur outside of Illinois, even though the agreement designates that Illinois law governs the agreement. However, any provision designating jurisdiction and venue outside of Illinois is void.
For Maryland franchisees, the Franchise Agreement stipulates dispute resolution through arbitration, but a Maryland franchise regulation states that requiring a franchisee to waive their right to file a lawsuit in Maryland for violations of Maryland Franchise Law is an unfair practice. This creates uncertainty about the enforceability of the forum selection requirement due to the Federal Arbitration Act. Therefore, prospective franchisees should consult with legal counsel to understand the specific arbitration terms and their implications based on their location.