Where must arbitration take place for disputes related to a Dq Treat franchise?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in subparagraph 12.1(D) of the Operating Agreement, any arbitration proceeding shall take place in the city nearest to the Authorized Location in which the American Arbitration Association shall maintain an office and facility for arbitration, or at such other location as may be mutually agreed upon by the parties.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, the standard operating agreement dictates that any arbitration proceeding will occur in the city nearest the authorized location, provided that the American Arbitration Association (AAA) maintains an office and facility for arbitration in that city. However, the parties can mutually agree to another location.
For franchisees in North Dakota, the FDD includes an addendum that reinforces this location stipulation. Specifically, it states that arbitration proceedings must take place in the city nearest to the authorized Dq Treat location where the AAA has an office and facility for arbitration, unless both parties agree to an alternative location. This ensures compliance with North Dakota statutes and regulations.
For prospective Dq Treat franchisees, this means that if a dispute arises that requires arbitration, the proceedings will generally take place near their franchise location, which can reduce travel costs and logistical challenges. However, it's important to note that this is contingent on the AAA having a local office and facility. Franchisees should also be aware that the location can be altered if both Dq Treat and the franchisee agree to a different site.