What rules govern the arbitration process for Dryject franchise disputes?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The Arbitrator shall apply the Federal Rules of Civil Procedure and the Federal Rules of Evidence to the extent possible while, in Arbitrator's discretion, still effecting the arbitration goal of streamlined administrative procedure.
The law of the Commonwealth of Pennsylvania shall govern the construction and interpretation of this Agreement in Arbitration.
- (b) The Arbitration proceedings shall be conducted before a single Arbitrator, selected in accordance with AAA Rules, who has been actively engaged in the practice of law for at least ten (10) years and has franchise law experience.
Prior to the commencement of hearings, the Arbitrator shall provide an oath of undertaking of impartiality.
- (c) Arbitration shall be conducted in the city and state where We maintain Our principal place of business (or, if there is no AAA office in that city, at the location of the AAA office nearest to Our principal place of business, which is currently Hatboro, Pennsylvania).
The award of the Arbitrator shall be final and judgment upon the award rendered in Arbitration may be entered in any court having jurisdiction thereof.
The costs and expenses of Arbitration, including compensation and expenses of the Arbitrator, shall be borne by the non-prevailing party.
- DryJect Franchise Agreement 53 (d) Any party to this Agreement may bring an action, including a summary or expedited proceeding to compel Arbitration of any such dispute or controversy, in a court of competent jurisdiction in the state and judicial district where We maintain Our principal place of business and, further, may seek provisional or ancillary remedies including temporary or injunctive relief in connection with such dispute or controversy, without providing or posting any bond or security regardless of any legal requirements to do so, provided that the dispute or controversy is ultimately resolved through binding Arbitration conducted in accordance with the terms and conditions of this Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, disputes that are not resolved through negotiation or mediation will be referred to arbitration, following the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association (AAA). The AAA's Optional Rules are specifically included in this process. The arbitrator selected must have been actively engaged in law practice for at least ten years and possess franchise law experience. Prior to any hearings, the arbitrator must provide an oath of impartiality. The Federal Rules of Civil Procedure and the Federal Rules of Evidence will be applied where possible, while still maintaining a streamlined arbitration procedure. The laws of the Commonwealth of Pennsylvania govern the construction and interpretation of the franchise agreement during arbitration.
The arbitration proceedings will take place in the city and state where Dryject's principal place of business is located, or if there is no AAA office there, at the nearest AAA office, which is currently Hatboro, Pennsylvania. The arbitrator's award is considered final, and judgment can be entered in any court with jurisdiction. The non-prevailing party is responsible for covering the costs and expenses of the arbitration, including the arbitrator's compensation and expenses.
Dryject may seek provisional or ancillary remedies, including temporary or injunctive relief, in connection with a dispute without needing to provide a bond or security, as long as the dispute is ultimately resolved through binding arbitration. However, Minnesota franchisees have special protections: Dryject cannot force Minnesota franchisees to litigate outside of Minnesota, waive a jury trial, or consent to certain penalties. Any release signed as a condition of renewal or transfer will not apply to claims under the Minnesota Franchise Act. Franchisees should consult with a legal professional to fully understand their rights and obligations regarding dispute resolution and arbitration.