If mediation fails for a Deka Lash franchisee, is the claim brought in court or arbitration?

According to Deka Lash's 2024 Franchise Disclosure Document, if mediation is unsuccessful and a franchisee decides to pursue a legal claim against Deka Lash, the franchisee agrees to bring such claim solely in binding arbitration. This arbitration will be conducted in the city or county where Deka Lash's headquarters is located, following the Commercial Arbitration Rules of the American Arbitration Association.

The proceedings will be overseen by a single arbitrator, whose decision will be final and binding on both parties. This means that the franchisee and Deka Lash must accept the arbitrator's decision, with very limited options for appeal. The judgment upon the award rendered by the arbitrator may be entered in any court having personal and subject matter jurisdiction.

This clause is significant for prospective franchisees as it mandates arbitration over court litigation, which can be a faster and sometimes less expensive method of dispute resolution. However, it also means the franchisee waives the right to a jury trial and has limited avenues for appealing the arbitrator's decision. Franchisees should consider the implications of this clause, especially concerning the location of the arbitration and the arbitrator's authority, before entering into an agreement with Deka Lash.