Does Desi District require franchisees to arbitrate disputes at a location remote from their business site?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2. Amendments. The Agreement (and any Guaranty Agreement) is amended to comply with the following:
- (1) Restrictive Covenants: Every contract by which Franchisee, any Guarantor, or any other person is restrained from exercising a lawful profession, trade, or business of any kind is subject to NDCC Section 9-08-06.
- (2) Situs of Arbitration Proceedings: Franchisee and any Guarantor are not required to agree to the arbitration of disputes at a location that is remote from the site of Franchisee's business.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, franchisees in North Dakota are not required to agree to arbitrate disputes at a location that is remote from the site of the franchisee's business. The North Dakota Rider to the Franchise and Multi-Unit Development Agreement specifies this condition. This amendment ensures that Desi District franchisees in North Dakota can resolve disputes closer to their business operations, which can reduce travel costs and logistical challenges.
For prospective Desi District franchisees in North Dakota, this is a beneficial provision. It allows for more convenient and potentially less expensive dispute resolution. This contrasts with standard franchise agreements, which often stipulate arbitration locations that may be distant and burdensome for the franchisee.
However, this protection applies specifically to franchisees in North Dakota, as indicated by the rider. Franchisees in other states may still be subject to arbitration clauses that require them to travel to locations remote from their business. Additionally, in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.
Therefore, prospective franchisees should carefully review the dispute resolution terms in the franchise agreement and any state-specific addenda to understand their rights and obligations regarding arbitration locations. Franchisees outside of North Dakota and Washington should discuss arbitration locations with Desi District during their due diligence.