Where must disputes with Dq Treat be arbitrated, according to the franchise agreement?

According to Dq Treat's 2025 Franchise Disclosure Document, dispute resolution through arbitration or mediation is addressed in Section 12 of the franchise agreement. Except for certain claims, all disputes must be arbitrated in Minneapolis, Minnesota, or at another mutually agreeable place. This is subject to state law.

For a prospective franchisee, this means that if a dispute arises with Dq Treat that cannot be resolved informally, the primary method of resolution will be arbitration, not a traditional lawsuit. The arbitration will take place in Minneapolis, Minnesota, unless both parties agree to an alternative location. This could mean increased travel costs for franchisees located outside of Minnesota.

It is important to note the phrase "except for certain claims," which suggests that some types of disputes may not be subject to arbitration and could potentially be litigated in court. The FDD also specifies (in section 15.9) that litigation must be in the Federal District Court for the District of Minnesota or in Hennepin County District Court, Fourth Judicial District, Minneapolis, Minnesota. Franchisees should carefully review the franchise agreement to understand which claims are subject to arbitration and which may be pursued through litigation.

This arbitration clause is a fairly standard practice in franchising, as it offers a potentially faster and less expensive way to resolve disputes compared to court litigation. However, franchisees should be aware of the implications of arbitrating in a specific location and should consider seeking legal counsel to fully understand their rights and obligations under the franchise agreement.