Where must disputes be mediated or arbitrated for Eriks Delicafe?
Eriks_Delicafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| t. Integration/merger clauses | Sections 7.2 and 7.3 | Franchise Agreement terms express all obligations. Prior agreements and promises not enforceable. These provisions are binding subject to California law. |
| u. Dispute resolution | Section 7.11 | Except for certain claims, all disputes |
| by arbitration or | must be mediated or arbitrated in San | |
| mediation | Jose, California. (See Note 4) | |
| v. Choice of forum | Section 7.9 | Litigation must be in San Jose, California. |
| w. Choice of law | Section 7.9 | California law applies. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2024 FDD)
According to Eriks Delicafe's 2024 Franchise Disclosure Document, Item 17 outlines the dispute resolution process. Except for certain claims, all disputes with Eriks Delicafe must be mediated or arbitrated in San Jose, California. This means that if a franchisee has a disagreement with Eriks Delicafe that cannot be resolved informally, the franchisee will likely need to travel to San Jose, California to resolve the issue through mediation or arbitration.
This requirement to mediate or arbitrate in San Jose, California could present a significant cost and inconvenience for franchisees located outside of California. Mediation involves a neutral third party helping the franchisee and Eriks Delicafe reach a mutually agreeable solution. Arbitration involves a neutral third party making a binding decision after hearing arguments and reviewing evidence from both sides. Both processes can be costly, involving legal fees, travel expenses, and other related costs.
Additionally, the Franchise Agreement dictates that litigation must also occur in San Jose, California. The Franchise Agreement is governed by California law. Franchisees should be aware of these stipulations, as they could significantly impact their ability to pursue legal action against Eriks Delicafe if a dispute arises. It is advisable to seek legal counsel to fully understand the implications of these provisions before entering into a franchise agreement with Eriks Delicafe.