Does Deer Solution require arbitration for claims that may entitle them to injunctive relief?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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. of the Franchise Agreement:
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the standard franchise agreement mandates dispute resolution through arbitration. However, this requirement is subject to certain state-specific amendments, particularly concerning claims arising under state franchise laws. For instance, the Maryland amendment explicitly allows a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the general arbitration provision. Similarly, Illinois law voids any provision that designates jurisdiction and venue outside of Illinois, although arbitration outside of Illinois is permitted.
These amendments indicate that while Deer Solution generally prefers arbitration, the enforceability of this provision is limited by state laws designed to protect franchisees. Specifically, these laws ensure that franchisees do not waive their rights to pursue legal action under state franchise regulations. The amendments for Rhode Island, Virginia, Washington, North Dakota, and New York also include provisions that protect franchisees' rights under their respective state franchise laws, preventing waivers of claims or disclaimers of reliance on franchisor statements.
For a prospective Deer Solution franchisee, this means that the arbitration clause may not be fully enforceable in their state, especially for claims related to state franchise laws. It is crucial to review the specific state amendments applicable to their location to understand their rights and limitations regarding dispute resolution. Franchisees should consult with legal counsel to fully understand the implications of these provisions and how they may affect their ability to seek injunctive relief or other remedies in case of a dispute with Deer Solution.