Does Devon Creek require disputes to be resolved through arbitration or mediation?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
written notice to you. |
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| t. | Integration/merger clause | Section 21.4 | Only the terms of the Franchise Agreement and other related written agreements are binding (subject to applicable state law.) Any representations or promises outside of the disclosure document and Franchise Agreement may not be enforceable. Notwithstanding the foregoing, nothing in any Franchise Agreement is intended to disclaim the express representations made in this Franchise Disclosure Document. |
| u. | Dispute resolution by arbitration or mediation | Sections 20.1 and 20.2 | At our option, claims that are not resolved internally may be submitted to non-binding mediation at our headquarters, subject to state law. |
| v. | Choice of forum | Section 20.3 | Litigation takes place in North Carolina, subject to applicable state law. |
| w. | Choice of law | Section 20.3 | North Carolina law applies, subject to applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 37–42)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek does not require disputes to be resolved through arbitration or mediation. Instead, at Devon Creek's option, claims that are not resolved internally may be submitted to non-binding mediation at their headquarters, subject to state law.
This means that if a dispute arises between a franchisee and Devon Creek, the franchisee may be required to attend mediation at Devon Creek's headquarters. However, the mediation is non-binding, meaning that the franchisee is not required to accept the outcome of the mediation.
Furthermore, the FDD states that litigation takes place in North Carolina, subject to applicable state law, and that North Carolina law applies, subject to applicable state law. This means that if a franchisee chooses to litigate a dispute with Devon Creek, they will likely have to do so in North Carolina, and North Carolina law will likely apply to the dispute. Franchisees should consult with a legal professional to understand the implications of these provisions.