Which sections of The Standardx agreements detail dispute resolution by arbitration or mediation?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | ||
|---|---|---|---|
| u. Dispute resolution by arbitration or mediation | 14.1 of Franchise Agreement; 11 of Central Services Agreement | ||
| v. Choice of forum | 14.3 of Franchise Agreement; 11 of Central Services Agreement | ||
| Provision | Section in franchise or other agreement | ||
| w. Choice of law | 14.2 of Franchise Agreement; 8C of Confidentiality Agreement; 11 of Central Services Agreement Provision | ||
| u. | Dispute resolution by arbitration or mediation | 14.1 of Franchise Agreement; 11 of Central Services Agreement | We and you must arbitrate all disputes at a location the arbitrator chooses within 10 miles of our then current principal business address (currently Chicago, Illinois). |
| v. | Choice of forum | 14.3 of Franchise Agreement; 11 of Central Services Agreement | Subject to arbitration obligation and state law, litigation generally must be in our home state (currently Illinois). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 75–81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, dispute resolution through arbitration or mediation is addressed in specific sections of the Franchise Agreement and the Central Services Agreement. Item 17 details that Section 14.1 of the Franchise Agreement and Section 11 of the Central Services Agreement outline the procedures for dispute resolution.
The FDD specifies that The Standardx and the franchisee must arbitrate all disputes. The arbitration location will be chosen by the arbitrator but must be within 10 miles of The Standardx's principal business address, which is currently in Chicago, Illinois. This means that a franchisee, regardless of their location, may be required to participate in arbitration near The Standardx's headquarters.
This requirement to arbitrate disputes in a specific location could present logistical and financial challenges for franchisees located far from Chicago. Franchisees should consider these potential costs when evaluating the franchise opportunity. It is also important to carefully review Sections 14.1 of the Franchise Agreement and Section 11 of the Central Services Agreement to fully understand the scope and process of arbitration or mediation as detailed in those documents.