What organization handles the binding arbitration for Deer Solution disputes?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, the excerpts provided do not specify which organization would handle binding arbitration. However, the Maryland Franchise Agreement Amendment does mention that disputes are resolved through arbitration. It also acknowledges a potential conflict between the Franchise Agreement's forum selection requirements and Maryland law regarding a franchisee's right to file a lawsuit in Maryland for violations of the Maryland Franchise Law. This suggests that arbitration is the intended method for dispute resolution, but the specific entity is not identified.
Several state-specific amendments address the enforceability and location of arbitration proceedings. For example, the Illinois Franchise Agreement Amendment states that while the agreement can provide for arbitration to take place outside of Illinois, any provision designating jurisdiction and venue outside of Illinois is void. Similarly, the Rhode Island FDD Amendment indicates that any provision restricting jurisdiction or venue to a forum outside the state is void with respect to claims enforceable under the Rhode Island Franchise Investment Act.
Given the lack of a specified arbitration organization and the state-specific legal considerations, prospective Deer Solution franchisees should seek clarification from the franchisor regarding the arbitration process. Specifically, they should inquire about the organization that would conduct the arbitration, the rules and procedures governing the arbitration, and the costs associated with arbitration. Understanding these details is crucial for assessing the potential risks and benefits of the franchise agreement.