Where will litigation occur for disputes not resolved by mediation for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| FRANCHISE AGREEMENT | |||
| a. Length of the | 3.1 | 10 years | |
| franchise term | |||
| b. Renewal or extension of the term | 3.2 | If you have complied with the Franchise Agreement and certain conditions, you may enter into a successor franchise agreement for the franchise for 2 consecutive additional 5-year terms. | |
| c. Requirements for | 3.2 | You must be in compliance with the Franchise | |
| franchisee to renew or | Agreement; must have satisfied all monetary | ||
| extend | obligations owed to us and our affiliates; must be in | ||
| 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. |
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, disputes that are not resolved through mediation will be litigated in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania. This is subject to state law, which means that certain state laws may override this provision.
For a prospective Mr. Sandless franchisee, this means that if a dispute arises with the franchisor that cannot be resolved through mediation, they may have to travel to Pennsylvania to litigate the matter. This could result in increased legal costs due to travel expenses and the need to hire attorneys familiar with Pennsylvania law.
However, it's important to note that certain states have laws that may override the choice of forum provision in the franchise agreement. For example, the Rhode Island Franchise Investment Act states that a provision in a franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under the Act. Similarly, Maryland law allows a franchisee to enter into litigation with Mr. Sandless in the State of Maryland, regardless of the language in the Franchise Agreement. Therefore, franchisees should be aware of the laws in their own state that may affect the enforceability of the forum selection clause.