Must most disputes with Moes Southwest Grill be resolved by arbitration?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | ||
|---|---|---|
| Franchise | ||
| Provisions | Agreement | Summary f. You pay us a Transfer Fee. g. You and your guarantors and owners must sign h. general release and remain liable for pre-transfer obligations |
| u. | Section 19.1 of | Most disputes must be resolved by arbitration. |
| Dispute resolution by | ||
| arbitration or mediation | Franchise Agreement | |
| v. | Section 19.1 of | Subject to state law, currently, arbitration or lawsuit |
| Choice of forum | ||
| Franchise | must be in the metropolitan area of district court where | |
| Agreement | our principal place of business is located (currently, Georgia). | |
| w. | Sections 15.6 | Subject to state law, Georgia law applies to all disputes |
| Choice of law | ||
| and 22.5 of | except those related to the non-competition covenants, | |
| Franchise | which will be governed by the laws of the state in which | |
| Agreement | your Restaurant is located. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 77–82)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, most disputes with the company must be resolved through arbitration. This is a common practice in franchising, where arbitration is often used as a method of alternative dispute resolution to avoid the costs and time associated with traditional litigation.
For a prospective franchisee, this means that if a dispute arises with Moe's Southwest Grill, it will likely be settled through arbitration rather than in court. The arbitration or lawsuit must occur in the metropolitan area of the district court where Moe's Southwest Grill's principal place of business is located, which is currently in Georgia, unless state law dictates otherwise.
Furthermore, Georgia law governs all disputes, except those related to non-competition covenants, which are governed by the laws of the state where the restaurant is located. Franchisees should be aware of these provisions and understand the implications of agreeing to resolve disputes through arbitration, including potential limitations on their legal rights and remedies.