Does state law affect the Deer Solution dispute resolution process?
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. |
|---|---|---|
| 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. | ||
| w. Choice of law | 18.F. | New Jersey law will govern. However, this provision is |
| subject to state law and as otherwise disclosed in Exhibit H | ||
| to this Disclosure Document. |
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, state law can affect the dispute resolution process. While Deer Solution requires disputes to first go through non-binding mediation and then binding arbitration in Morris County, New Jersey, this is explicitly "subject to applicable state law." This means that state laws regarding mediation and arbitration may override or modify the procedures outlined in the franchise agreement.
Similarly, the Franchise Disclosure Document indicates that all mediation, arbitration, and litigation proceedings must occur in the state court of general jurisdiction closest to Morris County, New Jersey, or the nearest United States District Court to Deer Solution's corporate headquarters. However, this is also "subject to applicable state law," suggesting that state laws regarding venue and jurisdiction could influence where legal proceedings take place.
Furthermore, the franchise agreement specifies that New Jersey law will generally govern the agreement. However, this choice of law is also "subject to state law and as otherwise disclosed in Exhibit H to this Disclosure Document." This implies that certain aspects of the franchise relationship may be governed by the laws of the franchisee's state, particularly if those laws conflict with New Jersey law or are specifically addressed in Exhibit H. A prospective franchisee should carefully review Exhibit H and consult with legal counsel to understand how state laws might impact their rights and obligations under the Deer Solution franchise agreement.