Are there any exceptions to the requirement to submit all disputes to arbitration for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Only those portions of the mediation or arbitration clause with respect to such claim or claims as are necessary to comply with applicable law will be invalid and considered severable, but the remainder will be enforced.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, only those portions of the mediation or arbitration clause with respect to such claim or claims as are necessary to comply with applicable law will be invalid and considered severable, but the remainder will be enforced. This means that while Southern Steer generally requires disputes to be resolved through mediation or arbitration, there are exceptions when certain parts of those clauses conflict with applicable laws.
In practical terms, this implies that if a specific aspect of the mediation or arbitration process outlined in the franchise agreement is found to be illegal or unenforceable under the relevant laws, that particular aspect will be removed or adjusted to comply with the law. However, the rest of the mediation and arbitration agreement will still be valid and enforceable.
For a prospective franchisee, this means that while you are generally bound to resolve disputes through mediation or arbitration, you are not giving up your rights to legal recourse if certain parts of the agreement are found to be unlawful. It is important to consult with a legal professional to understand your rights and obligations regarding dispute resolution under the Southern Steer franchise agreement and applicable laws.