What is the required first step in resolving disputes related to the Deer Solution franchise?
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 County, New Jersey and, if mediation is unsuccessful, then to binding arbitration in Morris County, New Jersey. This provision is subject to applicable state law. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–45)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the initial step for resolving disputes, with some exceptions for injunctive relief, involves submitting the dispute to non-binding mediation in Morris County, New Jersey. If the mediation proves unsuccessful, the dispute must then proceed to binding arbitration, also in Morris County, New Jersey. This process is subject to applicable state law, which could potentially modify these requirements.
This means that a Deer Solution franchisee who has a dispute with the franchisor must first attempt to resolve it through mediation before pursuing arbitration. Mediation is a process where a neutral third party helps the parties reach a mutually agreeable resolution. Because it is non-binding, either party can reject the mediator's suggestions.
If mediation fails, the franchisee must then participate in binding arbitration. In arbitration, a neutral arbitrator hears evidence and makes a decision that is legally binding on both parties. This decision can be enforced in court. Both the mediation and arbitration proceedings are required to take place in Morris County, New Jersey, regardless of where the franchisee's business is located, which could create additional travel and legal expenses for franchisees located far from New Jersey.
It is important to note that these dispute resolution procedures do not apply to claims for injunctive relief, which typically involve seeking a court order to stop someone from doing something. Also, the FDD stipulates that New Jersey law governs the agreement, but this is subject to state law and Exhibit H of the document, which franchisees should carefully review.