Where will arbitration take place for disputes related to the Marble Slab Creamery agreement?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
10.9 Dispute Resolution
(a) Except for a claim with respect to: (a) ownership or use of Franchisor's trademarks, service marks, trade names, logos, symbols and other proprietary symbols, (b) enforcement of Section 9 hereof, or (c) monies owed by Applicant to Franchisor, any claim or controversy arising out of or related to this Agreement or the making, performance, or interpretation thereof will be conducted before and in accordance with (a) the then prevailing commercial rules of the American Arbitration Association ("AAA"), or at Franchisor's option, (b) the Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc. ("JAMS") (AAA and JAMS, as applicable are referred to below as the "Arbitration Association"). Applicant and Franchisor will each appoint one arbitrator from a list of arbitrators provided by the Arbitration Association, and those two arbitrators will appoint a third arbitrator from such list. The three arbitrators will determine facts, apply the Applicable Law, and award compensatory damages, but not punitive damages, which are hereby waived by Applicant and Franchisor. All arbitration proceedings will take place in the county in which Franchisor's headquarters is located. Each party to the arbitration will bear such party's own legal fees and expenses, and the fees and expenses of the Arbitration Association and the arbitrators will be paid by such party or parties as the arbitrators determine. The award made by the arbitrators will be binding and final on the parties to such proceedings, and will not be subject to
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, arbitration proceedings for disputes will occur in the county where Marble Slab Creamery's headquarters is located. This applies to any claim or controversy arising from or related to the Franchise Agreement, its making, performance, or interpretation. However, this excludes claims regarding the ownership or use of Marble Slab Creamery's trademarks, enforcement of Section 9 of the agreement, or monies owed to Marble Slab Creamery.
This means that if a franchisee has a dispute with Marble Slab Creamery that proceeds to arbitration, the franchisee will likely need to travel to the county where Marble Slab Creamery's headquarters is situated. This could involve significant travel expenses and logistical challenges for franchisees who are located far from the headquarters. Franchisees are responsible for their own legal fees and expenses, while the fees and expenses of the Arbitration Association and the arbitrators will be paid by the party or parties as determined by the arbitrators.
It is important to note that the arbitrators are authorized to determine facts, apply the applicable law, and award compensatory damages. However, they cannot award punitive damages, as these are waived by both the franchisee and Marble Slab Creamery. The arbitration award is binding and final, with no further recourse available.
This arbitration clause is fairly standard in franchise agreements, though the specific location and rules can vary. Prospective franchisees should consider the potential costs and inconvenience of arbitrating in Marble Slab Creamery's home county when evaluating the franchise opportunity.