factual

Are disputes related to the Advanced Mobile Iv And Amiv agreement subject to arbitration?

Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDD

Answer from 2023 FDD Document

    1. issues relating to the offer or sale of the franchise; and
    1. issues relating to the franchise relationship or its expiration, non-renewal, and termination.

45 – ADVANCED MOBILE IV FRANCHISE AGREEMENT

Arbitration will be before an arbitrator selected by and mutually agreed upon by the parties under the process and rules of the American Arbitration Association or its successor. The arbitrator will be required to have at least five years of experience in franchise law. The arbitrator will have power and jurisdiction to decide the controversy or dispute solely according to the express provisions of this Agreement. The arbitrator may not alter, amend, delete, or add to the provisions of this Agreement by implication or otherwise. In any arbitration the parties will be entitled to injunctive relief or specific performance of the obligations of the other. The arbitrator will determine the prevailing party for purposes of this Section and may make a percentage award of reimbursable fees and expenses. The decision of the arbitrator made within its power or jurisdiction will be final and binding. The decision may be entered as a judgment in any court of law having jurisdiction.

If You are an entity with more than one owner, the partnership agreement, shareholders agreement, limited liability operating agreement or other similar agreement for the entity ("Owners Agreement") will be subject to the following provisions which will supersede any contrary provisions in that agreement:

    1. Your owners ("Owners") agree to submit any dispute they cannot resolve relating to the operation and management of the franchise business to arbitration by our president or his designee. If the arbitration submission is accepted by our president, it must be held at our headquarters or at another location the Owners and the arbitrator agree. The decision of the arbitrator will be final and subject to enforcement by the courts of competent jurisdiction. If the submission to arbitration is not accepted by our president, the Owners must resolve their disputes in accordance with the other provisions of this Agreement.
    1. The term "operations and management" includes, but is not limited to, questions relating to:
    • A. Allocations of management responsibilities between the Owners;
    • B. Contributions to capital for purposes of business operations, repairs and remodeling;
    • C. The reasonable salaries of the Owners;
    • D. Marketing efforts;
    • E. The termination of the employment of an Owner;
    • F. Procedures for making and implementing management decisions;
    • G. Whether an Owner has performed duties with respect to the operation or management of the franchise business.
    1. Unless the Owners and the arbitrator agree in writing otherwise, "operation and management" does not include questions relating to:
    • a) Allocations. computations or distributions of profit or loss:
    • b) Accounting issues;
    • c) Elections of officers of the entity;
    • d) Investments of cash not necessary for the operation of the business;
    • e) Determining whether an Owner is disabled or incompetent within the meaning of the Owners Agreement;
    • f) The fair market value of the Owners' interests in the entity;
    • g) Whether an event has occurred, which gives rise to a right to buy the interest of an Owner other than a right resulting from an Owner's default determined to exist under 2, above;
  • h) Whether an Owner has met his obligations to purchase the interest of any current or former Owner;

Source: Item 23 — RECEIPTS (FDD pages 54–202)

What This Means (2023 FDD)

According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, disputes pertaining to the franchise agreement are subject to arbitration. Specifically, issues relating to the offer or sale of the franchise, and issues concerning the franchise relationship, its expiration, non-renewal, and termination will be resolved through arbitration. This process involves an arbitrator selected by mutual agreement between the parties, adhering to the rules of the American Arbitration Association.

The arbitrator is required to possess at least five years of experience in franchise law and is limited to deciding disputes based solely on the express provisions of the Franchise Agreement, without the authority to alter or amend the agreement. The arbitration process allows parties to seek injunctive relief or specific performance, and the arbitrator will determine the prevailing party, potentially awarding reimbursement for fees and expenses. The arbitrator's decision is final and binding, enforceable in any court of law with jurisdiction.

However, the FDD also states that if there are multiple owners, disputes between owners regarding the operation and management of the franchise business may be submitted to arbitration by Advanced Mobile IV And Amiv's president or his designee. This arbitration would be held at the company headquarters or another agreed-upon location, with the arbitrator's decision being final and subject to court enforcement. This clause does not include questions relating to allocations, computations or distributions of profit or loss, accounting issues, elections of officers of the entity, investments of cash not necessary for the operation of the business, determining whether an Owner is disabled or incompetent within the meaning of the Owners Agreement, the fair market value of the Owners' interests in the entity, whether an event has occurred, which gives rise to a right to buy the interest of an Owner other than a right resulting from an Owner's default determined to exist under 2, above or whether an Owner has met his obligations to purchase the interest of any current or former Owner.

Disclaimer: This information is extracted from the 2023 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.