What experience must the arbitrator have in arbitrations involving 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Arbitration will be held before and under the arbitration rules of JAMS or its successor (or an organization designated by JAMS or its successor). If JAMS is unable or unwilling to conduct such proceedings, and the Parties cannot agree on an appropriate organization or person to conduct such proceedings, the arbitration will be heard by a single arbitrator from the AAA. The arbitrator must be experienced in franchising. If the Parties cannot agree upon the arbitrator, the senior-most officer, director, or manager of the association under which the arbitration is to take place will choose a neutral and disinterested arbitrator, and such choice will be final and binding upon the Parties.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, if arbitration is necessary to resolve a disagreement, the arbitrator must have experience in franchising. If 1 800 Packouts and the franchisee cannot agree on an arbitrator, the senior-most officer, director, or manager of the association under which the arbitration is to take place will choose a neutral and disinterested arbitrator. This choice is considered final and binding for both parties.
This requirement ensures that the person making critical decisions about the franchise relationship has a solid understanding of the unique legal and business issues that arise in franchising. It protects both 1 800 Packouts and the franchisee by ensuring the arbitrator is not completely unfamiliar with the franchise business model.
For a prospective franchisee, this means that any arbitration will be handled by someone with specific knowledge of the franchising industry, which can be beneficial. Franchisees should still conduct their own due diligence and seek legal counsel to fully understand their rights and obligations during any dispute resolution process.