Where must arbitration occur for disputes with Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the Franchise Agreement. These provisions may not be enforceable under North Dakota law.
Although the Franchise Agreement provide that the place of arbitration will be held at the American Arbitration Association office that is closest to the location of our principal executive office, we agree that the place of arbitration will be a location that is in close proximity to the site of your business.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the location for arbitration depends on the state where the franchise is purchased and the specific agreements made. Generally, the Franchise Agreement states that arbitration will occur at the American Arbitration Association office closest to Face Foundrie's principal executive office. However, there are exceptions and stipulations based on state laws.
For franchisees in North Dakota, Face Foundrie agrees that the arbitration location will be in close proximity to the franchisee's business site, regardless of what the Franchise Agreement states. Similarly, for franchises purchased in Washington, the arbitration site will be either in the state of Washington or a location mutually agreed upon at the time of arbitration or as determined by the arbitrator or mediator.
Furthermore, for franchisees in California, the FDD notes that the franchise agreement requires binding mediation or arbitration to occur in the city closest to Face Foundrie's principal executive office, but this provision may not be enforceable under California law. Prospective franchisees should consult legal counsel to determine the applicability of state and federal laws regarding venue restrictions. Therefore, the actual location of arbitration can vary and is subject to state-specific regulations and potential legal challenges.