Where will arbitration take place for disputes related to the Management Recruiters Franchise Agreement?

According to Management Recruiters' 2024 Franchise Disclosure Document, arbitration will generally take place in Berkeley County, South Carolina, and will be governed by the laws of South Carolina. This applies to all controversies, claims, disputes, and matters arising out of or relating to the Franchise Agreement, or the relationship between the franchisee and franchisor, except as provided in Section 22.5 and Section 22.7 of the agreement. All claims brought under this section must commence within one year from when the aggrieved party becomes aware of the facts giving rise to the claim.

However, there are exceptions to this rule for franchisees operating in specific states. For instance, the FDD includes an addendum for Indiana, stating that Indiana members must be allowed to have arbitration proceedings held in an Indiana location. This addendum also specifies that the Indiana Franchise Disclosure Law and the Indiana Franchise Deceptive Practices Law prevail if they conflict with South Carolina law, and that Indiana members must be allowed the jurisdiction and venue of the Indiana courts.

Similarly, for franchises governed by Minnesota law, the addendum states that Management Recruiters will comply with Minnesota statutes regarding termination and non-renewal notices. The Minnesota addendum also clarifies that the rule requiring franchisees not to waive their rights to a trial does not bar voluntary arbitration conducted by an independent tribunal under the rules of the American Arbitration Association. For franchisees in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside the State of Illinois is void; however, a franchise agreement may provide for arbitration to take place outside of Illinois.