Where must informal dispute resolution, mediation, or arbitration proceedings be conducted for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| office is located when litigation is filed (currently Broward | ||
| County, Florida). | ||
| w. Choice of law1 | Section 17.6 | Except to the extent governed by the United States |
| Trademark Act of 1946, the United States Copyright Act | ||
| or the United States Arbitration Act, and subject to | ||
| applicable state law, the Franchise Agreement is | ||
| interpreted under the laws of Florida. |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, any informal dispute resolution, mediation, or arbitration proceeding must be conducted where Stretch Zone's principal office is located when the demand is requested, subject to state law. Currently, Stretch Zone's principal office is located in Broward County, Florida.
This means that if a franchisee has a dispute with Stretch Zone that cannot be resolved informally, and they proceed to mediation or arbitration, the franchisee will likely need to travel to Broward County, Florida, regardless of where their franchise is located. This could involve significant travel expenses and time.
It is important to note that this requirement is subject to applicable state laws, which may provide some protection to franchisees. Prospective franchisees should consult with a legal professional to understand their rights and obligations regarding dispute resolution.
This requirement is fairly common in franchise agreements, as it allows the franchisor to manage disputes in a location convenient for them. However, it can create a disadvantage for franchisees who may have limited resources to travel and litigate in a distant location.