Where will binding arbitration be conducted for disputes arising from 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 Monicals Pizza's 2025 Franchise Disclosure Document, binding arbitration for disputes related to the franchise agreement will be conducted in Champaign County, Illinois. 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 serving Champaign County, will preside over the proceedings.
This means that if a dispute arises between a Monicals Pizza franchisee and the company regarding the franchise agreement, both parties are obligated to resolve the issue through binding arbitration in Champaign County, Illinois, rather than through a lawsuit in court. The decision made by the arbitrator will be final and legally enforceable.
However, there are exceptions to this arbitration clause. Controversies or claims relating to the ownership of Monicals Pizza's trademarks, unauthorized use or disclosure of trade secrets or confidential information, and claims for injunctive relief are not subject to arbitration. In these specific cases, Monicals Pizza retains the right to pursue legal action in court to protect its interests.