Where will the arbitration proceedings for The Standardx franchise disputes be conducted?

According to The Standardx's 2025 Franchise Disclosure Document, arbitration proceedings will be held at a location chosen by the arbitrator within ten miles of The Standardx's principal business address. The arbitrator does not have the authority to select a different location. This applies to all disputes arising from the franchise agreement or the relationship between The Standardx and the franchisee.

This means that a franchisee may be required to travel to The Standardx's principal business location for arbitration, regardless of where their franchise is located. This could create additional expenses for travel and lodging. The arbitrator must be a licensed attorney with hotel industry experience and be listed on the AAA's National Roster of Neutrals.

It is important to note that North Dakota franchisees have some additional protections. For disputes involving North Dakota franchisees, the arbitration site must be mutually agreed upon by both parties, to the extent required by North Dakota Franchise Investment Law, unless preempted by the Federal Arbitration Act. This stipulation provides North Dakota franchisees with a degree of control over the arbitration location, potentially mitigating the inconvenience and expenses associated with traveling to The Standardx's preferred location.

This arbitration clause ensures that disputes are resolved through arbitration rather than court proceedings, except for seeking temporary restraining orders or injunctive relief. Franchisees should consider the potential costs and inconveniences associated with arbitration, including travel expenses and the possibility of arbitrating in a location far from their franchise.