What dispute resolution provisions apply to the agreement for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
19. DISPUTE RESOLUTION
19.1 Resolution of Disputes.
- A. Arbitration. Except as stated in Section 19.1.D. (Excepted Disputes) of this Agreement, all disputes between you, your affiliates, Owners, guarantors, and/or your or your affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Franchised Business, will be resolved by binding arbitration. The arbitration proceeding shall be conducted by one arbitrator and, except as this Section 19.1 otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association (the "AAA"). All arbitration proceedings will be held at AAA's offices or other suitable offices that we select in the metropolitan area in which our principal place of business is then located. The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
- B. Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 19.1, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 19.1, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with Section 19.1.D. (Excepted Disputes).
- C. Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill FDD, dispute resolution between Moe's Southwest Grill and its franchisees involves binding arbitration except for specific disputes. All disputes related to the Franchise Agreement, the relationship between the franchisee and Moe's Southwest Grill, or the franchised business will be resolved through binding arbitration. This arbitration is conducted by a single arbitrator, following the Commercial Arbitration Rules of the American Arbitration Association (AAA). The arbitration proceedings will occur at AAA's offices or other suitable offices selected by Moe's Southwest Grill in the metropolitan area of their principal business location. The Federal Arbitration Act governs all arbitration-related matters.
The FDD specifies that arbitration will be conducted on an individual basis, not as a class-wide action, and consolidation with other arbitration proceedings is not permitted. However, if a court or arbitrator deems the prohibition on class-wide arbitration unenforceable, the arbitration clause will not apply, and the dispute will be resolved in a judicial proceeding. The arbitrator can award any appropriate relief, including monetary damages (with interest), specific performance, injunctive relief, and attorneys' fees and costs.
Certain disputes are excepted from the arbitration requirement, allowing either Moe's Southwest Grill or the franchisee to seek injunctive relief in a court of competent jurisdiction to prevent irreparable harm. The governing law for the Guaranty is the law of the State of Georgia. However, if the franchised business is located outside of Georgia and a provision of the Guaranty would be enforceable under the laws of that state, then that provision will be interpreted and construed under the laws of the state in which the franchised business is located.