Where will all arbitration hearings and proceedings take place for Eos Worldwide franchise disputes?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
At our sole discretion, any disputes and claims arising out of or relating to this Agreement, the rights and obligations of the parties hereto, third-party beneficiaries, and/or any guarantors and/or transferees of this Agreement, or any claims between any of the above parties, or any other claims or causes of action relating to the making, interpretation, or performance of either party under this Agreement or that is in any way related to your Franchise, may be resolved by submission to binding arbitration by and before a neutral franchise attorney referred by AAA and selected by the parties in accordance with the then-existing Commercial Arbitration Rules of the AAA. All hearings and other proceedings will take place in Michigan.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, any disputes arising from the franchise agreement may be resolved through binding arbitration. All hearings and other proceedings related to arbitration will take place in Michigan.
This means that if a franchisee has a dispute with Eos Worldwide that proceeds to arbitration, the franchisee will be required to travel to Michigan for any hearings or proceedings. This could involve significant travel expenses and time away from their business, depending on the franchisee's location.
It is fairly common in franchising for the location of arbitration or mediation to be specified in the franchise agreement, often favoring the franchisor's home state. Prospective franchisees should consider this factor, along with potential costs and inconveniences, when evaluating a franchise opportunity.