Does the Floyds 99 Franchise Agreement specify a method for dispute resolution through arbitration or mediation?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent the North Dakota Franchise Investment Law, N.D. Cent. Code, §§51-19-01 – 51-19- 17 applies, the terms of this Addendum apply.
Item 17, Additional Disclosures. The following statements are added to Item 17:
Any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota may be unenforceable under North Dakota law. Any mediation or arbitration will be held at a site agreeable to all parties. If the laws of a state other than North Dakota govern, to the extent that such law conflicts with North Dakota law, North Dakota law will control.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreement's stipulations regarding dispute resolution, specifically concerning mediation or arbitration, may be subject to state-specific laws. For instance, the addendum for North Dakota indicates that any provision mandating franchisees to consent to the jurisdiction of courts outside North Dakota or to adhere to the laws of a state other than North Dakota might not be enforceable under North Dakota law. It further clarifies that any mediation or arbitration proceedings will be conducted at a location agreeable to all involved parties. This suggests that while the Floyds 99 agreement may outline certain dispute resolution processes, these are not absolute and can be modified or superseded by state regulations to protect the franchisee's rights.
This means that a Floyds 99 franchisee's rights regarding dispute resolution, including the location and governing law, could vary depending on the state in which they operate. In North Dakota, for example, the franchisee has the right to a mutually agreeable location for mediation or arbitration, and North Dakota law may take precedence over conflicting laws from other states. This is designed to prevent franchisors from imposing unfair or inconvenient dispute resolution terms on franchisees.
Prospective Floyds 99 franchisees should carefully review the state-specific addenda to the franchise agreement, as these addenda outline how state laws may modify or override certain provisions of the standard agreement. Franchisees should also consult with a legal professional to fully understand their rights and obligations regarding dispute resolution in their specific state. This is particularly important in states with franchise-specific laws that aim to protect franchisees from potentially unfavorable terms in the franchise agreement.