For Face Foundrie franchise disputes, are most claims required to be litigated or arbitrated near the principal executive office?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Yes___ | No___ | 10. Do you understand that the only radius restriction concerning where another |
|---|---|---|
| franchised or company Facial Bar may open is the limited protected territory specified in your Franchise Agreement? | ||
| Yes___ | No___ | 11. Do you understand that most disputes or claims you may have arising out of or relating to the Franchise Agreement must be litigated in the federal and state courts located in the district of our principal executive office, or arbitrated at the office of the American Arbitration Association closest to the location of our principal executive office? |
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, most disputes or claims arising from the Franchise Agreement must be litigated or arbitrated near the brand's principal executive office. Specifically, disputes that are litigated must occur in the federal and state courts located in the district of Face Foundrie's principal executive office. For disputes subject to arbitration, the proceedings will be held at the American Arbitration Association (AAA) office closest to the location of Face Foundrie's principal executive office. This requirement is acknowledged by the Area Developer in the Area Developer Certification.
This clause has significant implications for prospective Face Foundrie franchisees. It means that if a dispute arises that leads to litigation or arbitration, the franchisee will likely need to engage legal counsel and participate in proceedings in the location of Face Foundrie's principal executive office. This could substantially increase the franchisee's legal costs due to travel, accommodation, and potentially higher legal fees depending on the location.
It is common in franchising for the franchise agreement to specify a particular jurisdiction for dispute resolution, often the location of the franchisor's headquarters. This allows the franchisor to manage legal proceedings more efficiently. However, franchisees should carefully consider the potential costs and logistical challenges of litigating or arbitrating disputes far from their own location. Franchisees should seek legal counsel to fully understand the implications of these clauses before signing the agreement.