Where will binding arbitration for Hyper Kidz disputes be conducted?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION 19: DISPUTE RESOLUTION; APPLICABLE LAW
- 19.1 Except to the extent we elect to enforce the provisions of this Agreement by judicial process and injunction in our sole discretion, all disputes, claims and controversies between the parties arising under or in connection with this Agreement or the making, performance or interpretation thereof (including claims of fraud in the inducement and other claims of fraud and the arbitrability of any matter) which have not been settled through negotiation will be settled by binding arbitration in Howard County, Maryland, under the authority of the Maryland statutes (the "Statutes").
The arbitrator(s) will have a minimum of five (5) years of experience in franchising or distribution law and will have the right to award specific performance of this Agreement.
If the parties cannot agree upon a mutually agreeable arbitrator, then the arbitration shall be conducted as per the selection method set forth in the Statutes.
The proceedings will be conducted under the commercial arbitration rules of the American Arbitration Association, to the extent such rules are not inconsistent with the provisions of this arbitration provision or the Statutes.
The decision of the arbitrator(s) will be final and binding on
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, binding arbitration for disputes will be conducted in Howard County, Maryland. This applies to all disputes, claims, and controversies between Hyper Kidz and the franchisee that arise under or in connection with the Franchise Agreement, including issues related to the making, performance, or interpretation of the agreement. This also extends to claims of fraud. The arbitration will occur under the authority of Maryland statutes.
The arbitrator(s) selected must have a minimum of five years of experience in franchising or distribution law. They also have the right to award specific performance of the agreement, meaning they can order a party to fulfill their obligations under the contract. If Hyper Kidz and the franchisee cannot agree on an arbitrator, the selection method will follow the procedures outlined in the Maryland statutes.
The proceedings will be conducted following the commercial arbitration rules of the American Arbitration Association, unless those rules conflict with the arbitration provision or Maryland statutes. The arbitrator(s)' decision will be final and binding on both parties. However, Hyper Kidz retains the right to enforce the agreement through judicial process and injunction at their discretion.