Where will all Dryer Vent Squad arbitration proceedings be conducted?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) Arbitration – Except, at our option, as to any claims or disputes related to or concerning a breach of this Agreement by you that may entitle us to the award of injunctive relief, you agree that any and all disputes, controversies, and claims, arising from and/or related to this Agreement, shall be submitted to the American Arbitration Association for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with the American Arbitration Association's then current rules for commercial disputes, except as may be otherwise required in this Agreement. All arbitration proceedings shall be conducted in Ocean County, New Jersey or, if suitable American Arbitration Association facilities are not available in Ocean County, New Jersey, then at a suitable American Arbitration Association location selected by the arbitrator that is located closest to Ocean County, New Jersey.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, arbitration proceedings will primarily take place in Ocean County, New Jersey. However, if suitable American Arbitration Association facilities are unavailable in Ocean County, the proceedings will be held at an alternative American Arbitration Association location selected by the arbitrator, situated closest to Ocean County, New Jersey.
This means that as a Dryer Vent Squad franchisee, you may be required to travel to Ocean County, New Jersey, for any arbitration proceedings, or to a location nearby if the primary location is unsuitable. This could involve expenses for travel, accommodation, and legal representation in a different location than where your franchise operates.
It's important to note that this arbitration clause may be superseded by state-specific franchise laws, such as the Washington Franchise Investment Protection Act. In Washington, arbitration or mediation must occur in Washington state or a location mutually agreed upon, or as determined by the arbitrator or mediator. Similarly, Illinois law states that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside of Illinois is permitted. Franchisees should consult with a legal professional to understand how local laws may affect the arbitration process and location.