Where is the site of binding arbitration for Mr. Sandless Franchise Agreements?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, any claims or disputes relating to the Franchise Agreement may 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. This is subject to state law. If mediation does not resolve the dispute, 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, also subject to state law.
This means that while Mr. Sandless may opt for mediation in Delaware County, Pennsylvania, franchisees should be aware that the specific location and rules governing dispute resolution can be influenced by state laws. For instance, the addendum for Rhode Island states that any franchise agreement provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
Prospective Mr. Sandless franchisees should carefully review the dispute resolution section of the Franchise Agreement and any applicable state-specific addenda to fully understand their rights and obligations. It is advisable to seek legal counsel to assess how these provisions may affect their ability to resolve disputes with the franchisor.