Under what circumstances related to dispute resolution for a Dq Treat franchise would arbitration not be required?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Section 12 | Except for certain claims, all disputes must be arbitrated in Minneapolis, Minnesota or at another mutually agreeable place (subject to state law). |
Source: Item 16 — UItem 16U***:** U**Restrictions on What the Franchisee May Sell (FDD pages 51–55)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, not all disputes necessarily require arbitration. The document specifies that, generally, disputes must be arbitrated in Minneapolis, Minnesota, or another mutually agreed-upon location, but this is subject to state law and exceptions for certain claims.
This means that while Dq Treat prefers arbitration as a method of dispute resolution, there are situations where a franchisee may pursue litigation instead. The FDD does not specify what these 'certain claims' are, so it is important to understand what types of claims fall outside the arbitration requirement.
A prospective Dq Treat franchisee should seek clarification from the franchisor regarding the specific types of claims that are exempt from arbitration. Understanding these exceptions is crucial for making informed decisions about the franchise agreement and potential legal options.