If mediation is unsuccessful, where must any legal claim against Deka Lash be brought?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
If mediation is unsuccessful and you decide to pursue a legal claim against us, you agree to bring such claim solely in binding arbitration conducted in the city or county where our headquarters is located, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The proceedings will be held by a single arbitrator. The decision of the arbitrator will be final and binding upon the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having personal and subject matter jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if mediation is not successful, any legal claim against Deka Lash must be brought solely in binding arbitration. This arbitration must be conducted in the city or county where Deka Lash's headquarters is located. The arbitration will follow 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 for both parties. The judgment upon the arbitrator's award can be entered in any court that has the appropriate jurisdiction over the matter.
This clause means that franchisees waive their right to sue Deka Lash in court and instead must resolve disputes through arbitration, which is generally faster and less expensive than litigation. However, the arbitrator's decision is final and there are limited grounds for appeal.