Where will arbitration proceedings be conducted for Face Foundrie disputes?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT IN SO FAR AS FRANCHISOR OR AREA DEVELOPER SEEKS TO ENFORCE THIS AGREEMENT BY JUDICIAL PROCESS AND INJUNCTION AS PROVIDED IN, AND EXCEPT FOR CONTROVERSIES, CLAIMS OR DISPUTES BASED ON AREA DEVELOPER'S USE OF THE MARKS, ALL CONTROVERSIES, CLAIMS OR DISPUTES BETWEEN FRANCHISOR AND AREA DEVELOPER ARISING OUT OF OR RELATING TO (A) THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN FRANCHISOR AND AREA DEVELOPER, (B) THE RELATIONSHIP BETWEEN AREA DEVELOPER AND FRANCHISOR OR (C) THE SCOPE AND VALIDITY OF THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN FRANCHISOR AND AREA DEVELOPER (INCLUDING THE SCOPE AND VALIDITY OF THE ARBITRATION OBLIGATIONS UNDER THIS SECTION, WHICH FRANCHISOR AND AREA DEVELOPER ACKNOWLEDGE IS TO BE DETERMINED BY AN ARBITRATOR AND NOT A COURT) SHALL BE DETERMINED BY ARBITRATION WITH THE AMERICAN ARBITRATION
ASSOCIATION ("AAA") AT THE OFFICE OF THE AAA CLOSEST TO FRANCHISOR'S PRINCIPAL EXECUTIVE OFFICE ON THE DATE OF SUBMISSION OF THE MATTER TO THE AAA.
The arbitration proceedings will be conducted by one arbitrator and, except as this Section 18 otherwise provides, according to the AAA's then current rules. All matters relating to arbitration will be governed by the United States Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, arbitration proceedings between Face Foundrie and an area developer will be conducted with the American Arbitration Association (AAA) at the office of the AAA closest to Face Foundrie's principal executive office on the date the matter is submitted to the AAA. This means that if a dispute arises that requires arbitration, the location will be determined by the proximity to Face Foundrie's headquarters at the time of submission.
This clause is important for prospective area developers as it dictates where they may need to travel for arbitration, potentially incurring travel and accommodation costs. It is also significant that the arbitration will be handled by the AAA, which has its own set of rules and procedures that will govern the process, unless otherwise specified in the agreement. The proceedings will be conducted by a single arbitrator, further streamlining the process.
It's worth noting that there are exceptions to this arbitration clause. Face Foundrie or the area developer can seek to enforce the agreement through judicial process and injunction. Additionally, controversies, claims, or disputes based on the area developer's use of Face Foundrie's marks are also excluded from this arbitration requirement. These exceptions allow for certain types of disputes to be resolved in court rather than through arbitration.
Furthermore, the arbitrator appointed must have at least ten years of experience in franchising or franchise law. The arbitrator is bound by the substantive law, requirements, waivers, and limitations outlined in the agreement and cannot alter the terms of the agreement. The arbitrator's authority is limited to the specific dispute presented in the written demand for arbitration and response, and they cannot award relief that was not specifically requested by the parties before the arbitration hearing began.