Where will arbitration proceedings be held for disputes related to the Monicals Pizza franchise agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement evidences a transaction involving commerce and, therefore, the Federal Arbitration Act, Title 9 of the United States Code is applicable to the subject matter contained herein. Except for controversies or claims relating to the ownership of any of Franchisor's Marks or the unauthorized use or disclosure of Franchisor's Trade Secrets or other Confidential Information and except for claims for injunctive relief, all disputes arising out of or relating to this Agreement or to any other agreements between the parties, or with regard to interpretation, formation or breach of this or any other agreement between the parties, shall be settled by binding arbitration conducted in Champaign County, Illinois, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The proceedings will be held by a single arbitrator agreed upon by the parties or otherwise appointed by the Circuit Court for the State of Illinois located in or serving Champaign
County, Illinois. The decision of the arbitrator shall be final and binding upon the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having personal and subject matter jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, arbitration proceedings will be held in Champaign County, Illinois. Specifically, any disputes arising from the franchise agreement, or other agreements between the franchisee and Monicals Pizza, will be settled through binding arbitration. This excludes controversies or claims relating to the ownership of Monicals Pizza's Marks, unauthorized use or disclosure of trade secrets or confidential information, and claims for injunctive relief.
The arbitration will follow the Commercial Arbitration Rules of the American Arbitration Association. A single arbitrator, agreed upon by both parties or appointed by the Circuit Court for the State of Illinois located in or serving Champaign County, Illinois, will preside over the proceedings. The arbitrator's decision is considered final and binding.
This means that if a Monicals Pizza franchisee has a dispute with the franchisor that isn't related to trademark ownership, trade secrets, confidential information, or injunctive relief, they will have to resolve it through arbitration in Champaign County, Illinois. This may require the franchisee to travel to Champaign County, Illinois, incurring travel costs and other expenses. The outcome of the arbitration is binding, limiting the franchisee's options for further legal action.