Does the Gold Star Franchise Agreement require dispute resolution by arbitration or mediation?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| u. Dispute resolution by | None | |
| arbitration or mediation | ||
| v. Choice of forum | Section 22.3 | Litigation must be in Ohio |
| w. Choice of law | Section 22.1 | Ohio law applies |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 42–45)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, the table summarizing key provisions of the franchise agreement indicates whether dispute resolution is handled by arbitration or mediation. Specifically, the table in Item 17 addresses various aspects of the franchise relationship, including dispute resolution.
The table shows that there is no specification of dispute resolution by arbitration or mediation in the Franchise Agreement. However, the agreement specifies that litigation must be in Ohio and Ohio law applies.
Prospective franchisees should be aware that the absence of mandatory arbitration or mediation could mean disputes may need to be resolved through litigation, potentially increasing costs and time. It is advisable to consult with a legal advisor to understand the implications of this and explore alternative dispute resolution options during the negotiation phase, if possible.