Under the Kitchen Solvers agreement, what law governs matters relating to mediation or arbitration?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
All matters relating to mediation or arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1, et. seq.).
Except to the extent governed by the Federal Arbitration Act or other federal law, this Agreement, the franchise and all claims arising from or in any way related to the relationship between Franchisor, and/or any of its affiliates, on the one hand, and Developer, and any of Developer's owners, guarantors and/or affiliates, on the other hand, shall be interpreted and construed under the laws of the State of Wisconsin, which laws shall prevail in the event of any conflict of law, except that any law regulating the sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless jurisdictional requirements are met independently without reference to this paragraph.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the Federal Arbitration Act (9 U.S.C. §§ 1, et. seq.) governs all matters relating to mediation or arbitration. This means that any disputes between Kitchen Solvers and a franchisee that proceed to mediation or arbitration will be subject to the rules and procedures established by this federal law.
The Federal Arbitration Act is a broad piece of legislation that favors the enforcement of arbitration agreements. It applies to most commercial contracts, including franchise agreements, and aims to streamline dispute resolution through arbitration rather than traditional court litigation. This can have implications for the costs, speed, and formality of resolving disputes.
However, the FDD also states that except to the extent governed by the Federal Arbitration Act or other federal law, the laws of Wisconsin will be used to interpret and construe the agreement. Franchisees should be aware of the interplay between these provisions and how they might affect their rights and obligations in the event of a dispute with Kitchen Solvers.