What qualifications must the arbitrator have if the AAA is used for 1 800 Packouts arbitration?
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 1 800 Packouts's 2025 Franchise Disclosure Document, if arbitration is conducted through the American Arbitration Association (AAA), the arbitrator must have experience in franchising. This requirement is in place should JAMS (Judicial Arbitration and Mediation Service) be unable or unwilling to conduct proceedings, and the parties involved cannot agree on an alternative organization or individual to oversee the arbitration.
If the parties 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 all parties involved, ensuring that the selection process is impartial and conclusive.
This stipulation ensures that any arbitration is handled by someone with specific knowledge of the franchising industry, which can be complex and nuanced. This experience helps ensure fair and informed decisions, benefiting both 1 800 Packouts and the franchisee by providing a more relevant and equitable arbitration process. Franchisees should confirm that the arbitrator assigned meets this requirement to safeguard their interests during dispute resolution.