Are there any exceptions to the Deer Solution requirement to submit all disputes to mediation and arbitration?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
e Disclosure Document, | | | | | its exhibits, | | | | | and amendments. |
| 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. | |||
| 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, there are exceptions to the requirement that all disputes must first be submitted to non-binding mediation and then to binding arbitration. Specifically, claims for injunctive relief are exempt from this requirement. This means that if Deer Solution seeks a court order to compel a franchisee to take certain actions or stop certain behaviors immediately, they are not required to go through mediation or arbitration first.
Injunctive relief typically involves seeking a court order to prevent irreparable harm, such as a franchisee infringing on Deer Solution's trademarks or disclosing confidential information. The FDD also states that this provision regarding dispute resolution is subject to applicable state law, meaning that state laws may provide additional exceptions or modify the process.
All mediation, arbitration, and litigation proceedings must be conducted in, or closest to, a State court of general jurisdiction that is within or closest to Morris County, New Jersey. 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. The FDD also specifies that New Jersey law will govern dispute resolution, but this is subject to state law and as otherwise disclosed in Exhibit H to the Disclosure Document.