Where will arbitration proceedings be conducted for a Dryject franchise dispute?

According to Dryject's 2025 Franchise Disclosure Document, arbitration proceedings will be conducted in the city and state where Dryject maintains its principal place of business. If there is no American Arbitration Association (AAA) office in that city, the arbitration will take place at the AAA office nearest to Dryject's principal place of business, which is currently Hatboro, Pennsylvania. This means that a franchisee, regardless of their location, may be required to travel to Hatboro, Pennsylvania, or its vicinity, to participate in arbitration proceedings.

This requirement could create a financial burden for franchisees who live far from Pennsylvania, as they would need to cover travel and accommodation expenses. Furthermore, franchisees would need to factor in the cost of local counsel in Pennsylvania if they are not already represented by attorneys in that jurisdiction. The FDD also specifies that the arbitrator will be selected according to AAA rules, must have practiced law for at least ten years, and must have franchise law experience, ensuring a level of expertise in the arbitration process.

It is also important to note that the laws of the Commonwealth of Pennsylvania will govern the construction and interpretation of the franchise agreement during arbitration. This means that even if a franchisee operates in a different state, Pennsylvania law will be applied to the dispute. The FDD also states that any party can bring an action to compel arbitration in a court of competent jurisdiction in the state and judicial district where Dryject maintains its principal place of business, further emphasizing the importance of this location in dispute resolution.