Where will arbitration be held for a Mr. Sandless franchise dispute?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| t. | Integration/merger clause | 25.1 | Only the terms of the Franchise Agreement are binding (subject to applicable federal and/or state law). Any representations or promises outside of the Franchise Disclosure Document and other agreements may not be enforceable. Nothing in the agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. |
| u. | Dispute resolution by arbitration or mediation | 24.2, 24.3 | You must bring any dispute or claim to our President first for discussion before you may bring the dispute to a third party. At our option, all claims or disputes relating to the Franchise Agreement must be submitted first to mediation in Delaware County, Pennsylvania under the National Franchise Mediation Program ("NFMP") in accordance with the NFMP's mediation rules then in effect. (subject to state law) |
| v. | Choice of forum | 24.6 | Subject to state law, for any dispute not subject to or not resolved by mediation, the parties agree to litigate only in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania. |
| w. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, while the document mentions dispute resolution through mediation, it does not specify a location for arbitration. Instead, it indicates that at Mr. Sandless's option, all claims or disputes relating to the Franchise Agreement must first be submitted to mediation in Delaware County, Pennsylvania, under the National Franchise Mediation Program ("NFMP"). This mediation would follow the NFMP's rules. The FDD also states that for any dispute not subject to or not resolved by mediation, the parties agree to litigate only in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania, subject to state law.
This means that if mediation fails, any litigation will occur in the specified Pennsylvania courts, unless state law dictates otherwise. The agreement is governed by Pennsylvania law, again subject to state law. This is a critical point for prospective franchisees to understand, as it determines where they may have to travel and which laws will govern any legal disputes with Mr. Sandless.
However, the document includes state-specific addenda that may modify these terms. For example, the Rhode Island Franchise Investment Act states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void for claims enforceable under that Act. Similarly, Indiana law specifies that jurisdiction and venue must be in Indiana if the franchisee requests it. Therefore, franchisees need to carefully review the state addenda applicable to their location to understand their rights fully.
Because the FDD does not specify where arbitration would occur, a prospective franchisee should ask Mr. Sandless about the typical arbitration process, including the location and rules that would apply. Understanding these details is essential for assessing the potential costs and burdens of resolving disputes with Mr. Sandless.