What rules govern the arbitration process for Dryer Vent Squad?
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.
In connection with binding arbitration, you agree that:
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, disputes arising from the franchise agreement will be submitted to the American Arbitration Association (AAA) for binding arbitration. This means that instead of going to court, a neutral third party will make a decision that is legally binding on both Dryer Vent Squad and the franchisee.
The arbitration will be conducted by a single arbitrator, following the AAA's rules for commercial disputes, unless the franchise agreement specifies otherwise. The location for arbitration proceedings will be in Ocean County, New Jersey, or if AAA facilities are unavailable there, at a suitable AAA location closest to Ocean County, New Jersey, as selected by the arbitrator. However, the Washington FDD Amendment notes that for franchises purchased in Washington, the arbitration or mediation site will be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Dryer Vent Squad retains the option to pursue injunctive relief in court for breaches of the agreement by the franchisee, meaning they can seek a court order to stop the franchisee from doing something that violates the agreement. Franchisees in Illinois should note that Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still take place outside of Illinois.