Where will arbitration occur for Dq Treat franchise disputes, and who bears the cost?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. The Operating Agreement requires binding arbitration. The arbitration will occur at Minneapolis, Minnesota or at such other place as may be mutually agreeable to the parties with the cost being borne by the nonprevailing party. The prevailing party is entitled to recover its reasonable attorneys' fees and costs of the arbitration. You are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section
Source: Item 23 — UItem 23U***:** U**Receipts (FDD pages 67–70)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the Operating Agreement requires binding arbitration to resolve disputes. Unless both parties agree to a different location, the arbitration will take place in Minneapolis, Minnesota.
The FDD specifies that the non-prevailing party in the arbitration is responsible for covering the costs. This means that if a Dq Treat franchisee loses the arbitration case, they will likely have to pay for the arbitration expenses. Conversely, if Dq Treat loses, the company will bear the costs.
Furthermore, the prevailing party is entitled to recover reasonable attorney's fees and costs of the arbitration. This could significantly increase the financial stakes of any dispute, as the losing party may also have to cover the legal expenses of the winning party in addition to their own. Prospective franchisees should consider these financial implications carefully before entering into an agreement and are encouraged to seek legal counsel to fully understand their rights and obligations.