If mediation is unsuccessful, where will binding arbitration for Deer Solution disputes be held?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| u. | Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Morris and, if mediation is unsuccessful, then County, New Jersey to binding arbitration in Morris County, New Jersey. This provision is subject to applicable state law. |
|---|---|---|---|
| V. | Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation |
| proceedings must be conducted in, or closest to, State court | |||
| of general jurisdiction that is within or closest to Morris | |||
| County, New Jersey | |||
| or, if appropriate, the United States | |||
| District Court nearest to our corporate headquarters at the | |||
| time such action is filed. This provision is subject to | |||
| applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–45)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if disputes cannot be resolved through non-binding mediation, binding arbitration will occur in Morris County, New Jersey. Specifically, Item 17 outlines that all mediation, arbitration, and litigation proceedings must be conducted in the state court of general jurisdiction within or closest to Morris County, New Jersey. Alternatively, if appropriate, the proceedings can occur in the United States District Court nearest to Deer Solution's corporate headquarters at the time the action is filed. This is subject to applicable state law.
This means that a Deer Solution franchisee, regardless of their location, may be required to travel to Morris County, New Jersey, for dispute resolution. This could involve significant travel expenses and legal fees, especially if the franchisee is located far from New Jersey. Franchisees should factor these potential costs into their investment decision.
It is fairly common in franchising for the franchisor to specify a particular location for dispute resolution, often their home state. This provision favors Deer Solution, as they are likely more familiar with the local courts and legal resources in that area. Prospective franchisees should consider negotiating this clause or seeking legal advice to understand their rights and obligations under the franchise agreement, as well as the potential costs associated with out-of-state dispute resolution.