Where will hearings and other proceedings take place for Fly Fitness arbitration?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3.2 All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained in this Article 10 will be governed by the Federal Arbitration Act (9 U.S.C. §1 et seq.) and the federal common law of arbitration. All hearings and other proceedings will take place in the State of Nebraska, or the offices of the American Arbitration Association, or, if Franchisor so elects, in the county where the principal place of business of Developer is then located.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, arbitration hearings and proceedings will occur in one of three locations. The default location is the State of Nebraska, which is where Fly Fitness's principal place of business is located. Alternatively, the hearings can be held at the offices of the American Arbitration Association. However, Fly Fitness has the option to choose the county where the franchisee's principal place of business is located as the location for these proceedings.
This means that a Fly Fitness franchisee could potentially be required to travel to Nebraska for arbitration, or to the location of the American Arbitration Association, which could involve significant travel expenses and time away from their business. However, the franchisee may also benefit if Fly Fitness elects to hold the arbitration in the franchisee's home county, which would reduce travel costs and inconvenience.
It is important for prospective Fly Fitness franchisees to consider the potential costs and logistical challenges associated with arbitration, including travel, legal fees, and the time commitment required. Franchisees should also be aware that Fly Fitness has the option to choose the location of the arbitration, which could give them an advantage in the proceedings. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement, particularly with respect to dispute resolution.