Where will arbitration take place for Desi District disputes?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| v. Choice of forum | FA: §§ 17.1; 17.5 MUDA: § 7 | Arbitration will take place where our headquarters is located (currently, Frisco, Texas) (subject to applicable state law). Any legal proceedings not subject to arbitration will take place in the District Court of the United States, in the district where our headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where our headquarters is then located (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–48)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, arbitration will take place at the location of Desi District's headquarters, which is currently in Frisco, Texas. This is subject to applicable state law. However, any legal proceedings not subject to arbitration will take place in the District Court of the United States, in the district where Desi District's headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is then located, also subject to applicable state law.
This means that if a franchisee has a dispute with Desi District that goes to arbitration, the franchisee will likely need to travel to Frisco, Texas, regardless of where their franchise is located. This could involve significant travel expenses and time. Franchisees should factor these potential costs into their assessment of the franchise opportunity.
It is important to note the phrase "subject to applicable state law," which appears multiple times in the description of dispute resolution. This means that certain state laws may override or modify the terms outlined in the franchise agreement. Prospective franchisees should consult with an attorney to understand how state laws in their jurisdiction might affect the dispute resolution process with Desi District.