What law governs all matters relating to arbitration for Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
ALL MATTERS RELATING TO ARBITRATION WILL BE GOVERNED BY THE UNITED STATES FEDERAL ARBITRATION ACT (9 U.S.C. §§ 1 ET SEQ.). EXCEPT TO THE EXTENT GOVERNED BY THE FEDERAL ARBITRATION ACT, THE UNITED STATES TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET SEQ.) OR OTHER FEDERAL LAW, THIS AGREEMENT, THE FRANCHISE, AND ALL CLAIMS ARISING FROM THE RELATIONSHIP BETWEEN US AND YOU WILL BE GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES, EXCEPT THAT ANY ILLINOIS LAW REGULATING THE OFFER AND SALE OF FRANCHISES OR GOVERNING THE RELATIONSHIP OF A FRANCHISOR AND ITS FRANCHISEE WILL NOT APPLY UNLESS ITS JURISDICTIONAL REQUIREMENTS ARE MET INDEPENDENTLY WITHOUT REFERENCE TO THIS SUBSECTION.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the United States Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) governs all matters relating to arbitration. This means that any disputes between Potbelly Sandwich Works and a franchisee that are subject to arbitration will be resolved under the rules and guidelines established by this federal law.
This Act is a standard piece of legislation that governs arbitration proceedings across various industries in the United States. It aims to ensure that arbitration agreements are enforced according to their terms. For a Potbelly Sandwich Works franchisee, this implies that the arbitration process will be structured and legally sound, providing a framework for resolving conflicts outside of traditional court litigation.
However, the FDD also specifies that to the extent not governed by the Federal Arbitration Act, other aspects of the franchise agreement and the relationship between Potbelly Sandwich Works and the franchisee will be governed by the laws of Illinois, without regard to its conflict of laws rules, unless Illinois franchise law jurisdictional requirements are independently met. This indicates that while arbitration is federally regulated, other legal matters will fall under Illinois state law.