In Michigan, can Mr. Sandless require arbitration or litigation to be conducted outside of Michigan?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
This section does not require a renewal provision.
- (f) A provision requiring that arbitration or litigation be conducted outside this state.
This shall not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
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, Michigan franchisees are protected from provisions that would force them to conduct arbitration or litigation outside of the state. The FDD explicitly states that any such requirement is void and unenforceable against the franchisee. However, this protection does not prevent a franchisee from voluntarily agreeing to conduct arbitration outside of Michigan at the time the arbitration is initiated.
This provision ensures that Mr. Sandless franchisees in Michigan have the right to resolve disputes within their own state, providing a more accessible and potentially less costly legal process. It prevents Mr. Sandless from imposing a forum that may be inconvenient or financially burdensome for the franchisee.
It is important to note that while Mr. Sandless cannot mandate out-of-state arbitration or litigation, a franchisee can still choose to agree to it later. This highlights the importance of carefully considering any agreements made during a dispute resolution process. The franchisee should seek legal counsel before agreeing to conduct arbitration outside of Michigan to fully understand the implications of such a decision.