Where must arbitration or litigation be conducted for Extreme Art Studio franchises in Michigan?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, a provision in the franchise agreement cannot require arbitration or litigation to be conducted outside the state of Michigan. This means that if a dispute arises between Extreme Art Studio and a franchisee operating in Michigan, the arbitration or litigation proceedings must take place within Michigan, unless the franchisee agrees otherwise at the time of arbitration.

This protection ensures that Michigan-based Extreme Art Studio franchisees are not forced to travel to another state to resolve disputes, which could significantly increase their legal costs and inconvenience. It helps level the playing field, preventing the franchisor from imposing a distant or otherwise unfavorable legal venue on the franchisee.

However, the FDD clarifies that a Michigan franchisee can agree to conduct arbitration outside of Michigan at the time the arbitration is initiated. This provides flexibility if both parties find it mutually beneficial to hold the proceedings in a different location. This addendum ensures that Extreme Art Studio franchisees in Michigan retain their rights under Michigan law, preventing the franchisor from imposing unfair or restrictive terms regarding dispute resolution.