How are disputes resolved with Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | FA: § 17.1 MUDA: § 7 | All disputes are resolved by arbitration (except for injunctive relief) (subject to applicable state law). |
| 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). |
| w. Choice of law | FA: § 18.8 MUDA: § 7 | Texas (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, disputes are primarily resolved through arbitration. Specifically, all disputes are resolved by arbitration, except for those seeking injunctive relief, and this is subject to applicable state law. The arbitration will occur at Desi District's headquarters, which is currently located in Frisco, Texas, but this is also subject to applicable state law.
For any legal proceedings not subject to arbitration, the venue will be the District Court of the United States in the district where Desi District's headquarters is located. If that court lacks jurisdiction, the proceedings will occur in the state courts of the state and county where their headquarters is located, again subject to applicable state law. The choice of law for the franchise agreement is Texas, but this is also subject to applicable state law.
This means that a Desi District franchisee may be required to travel to Texas to resolve disputes through arbitration, which could increase costs. The franchisee should consult with a legal professional to understand the implications of these dispute resolution processes and the applicable state laws that may govern the franchise agreement.