Where must Mrcool arbitration take place?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Center; and you must comply with confidentiality, non- disclosure and non-solicitation covenants. |
|---|---|---|
| s. Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
| t. Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to the Franchise Agreement and the respective signed exhibits to the Franchise Agreement are binding, subject to state law. Nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments. |
| u. Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Graves County, Kentucky and, if mediation is unsuccessful, then to binding arbitration in Graves County, Kentucky. This provision is subject to applicable state law. |
| v. Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings must be conducted in, or closest to, State court of general jurisdiction that is within or closest to Graves County, Kentucky. This provision is subject to applicable state law. |
| w. Choice of law | 18.F. | Kentucky law will govern. However, this provision is subject to state law and as otherwise disclosed in Exhibit I to this Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, any disputes that cannot be resolved through non-binding mediation must proceed to binding arbitration. The location for both the mediation and arbitration is Graves County, Kentucky. Specifically, the proceedings must occur in, or closest to, a State court of general jurisdiction within or nearest to Graves County, Kentucky. This requirement is subject to applicable state law, meaning that state-specific regulations could potentially modify this location.
This clause dictates that Mrcool franchisees may be required to travel to Kentucky to resolve disputes with the company. This could increase expenses related to legal proceedings, as the franchisee would likely need to pay for travel, accommodation, and potentially local legal representation.
It is important to note that the FDD also mentions that Kentucky law will govern the franchise agreement, but this is also subject to state law and any disclosures made in Exhibit I of the document. Prospective franchisees should carefully review Exhibit I and consult with a legal professional to understand how these provisions may affect their rights and obligations, given that these stipulations regarding dispute resolution and choice of law can significantly impact a franchisee's ability to effectively address grievances with Mrcool.