If mediation is unsuccessful in resolving a dispute with Mrcool, where will binding 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. |
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, if disputes cannot be resolved through non-binding mediation, binding arbitration will occur in Graves County, Kentucky. Specifically, the FDD indicates that prior to arbitration, disputes must first be submitted to non-binding mediation in Graves County, Kentucky.
This means that a franchisee would likely need to travel to Graves County, Kentucky to resolve disputes with Mrcool. This could create additional expenses for travel, accommodation, and local legal representation.
It is important to note that these dispute resolution provisions, including the location of arbitration, are subject to applicable state law, which may provide additional protections or modify the process. Prospective franchisees should consult with a legal professional to understand the implications of these provisions in their specific state.