What rules govern the All County arbitration process?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
agree to participate in the mediation proceedings in good faith and with the intention of resolving the dispute if at all possible within thirty (30) days of the notice from the party seeking to initiate the mediation procedures. If the dispute is not resolved within thirty (30) days, the parties are free to pursue arbitration. In addition, if the party receiving notice of mediation has not responded within five (5) days of delivery of the notice or a party fails to participate in the mediation, this Article 25.12.1. will no longer be applicable and the other party can pursue arbitration. The parties agree that the costs of the mediator will be split equally between the parties. Each party must pay its own fees and expenses incurred in connection with the mediation. The mediation proceeding and any negotiations and results thereof will be treated as a compromise settlement negotiation and the entire process is confidential. At least five (5) days prior to the initial mediation session, each party must deliver a written statement of positions.
- 25.12.2. Arbitration. Except as provided in Article 25.12.3., any dispute, controversy or claim between you and us and any of our or your affiliates, officers, directors, shareholders, members, guarantors, employees or owners arising under, out of, in connection with or in relation to this Agreement, any lease of sublease for your Business, any loan or other financial arrangement between us or our affiliates and you, the parties' relationship, your Business, or any System Standard or the scope or validity of the arbitration obligation under this Article not resolved by mediation must be submitted to binding arbitration in accordance with the Federal Arbitration Act. The arbitration will be administered by the AAA pursuant to its Commercial Arbitration Rules then in effect by one arbitrator.
- 25.12.2.1. In connection with any arbitration proceeding, each party will submit or file any claim which would constitute a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil
Procedure) within the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such a proceeding will be barred.
- 25.12.2.2. Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or any other proceeding involving third parties. If a court or arbitrator determines that this limitation or joinder of or class action certification of claims is unenforceable, then the agreement to arbitrate the dispute will be null and void and the parties must submit all claims to the jurisdiction of the courts, in accordance with Article 25.14.
- 25.12.2.3. The arbitration must take place in the city closest to where our headquarters is located at the time of the dispute.
- 25.12.2.4. The arbitrator must follow the law and not disregard the terms of this Agreement. The arbitrator must have at least five (5) years of significant experience in commercial law. The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us. The arbitrator may not under any circumstances (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set. The arbitrator will have the right to make a determination as to any procedural matters as would a court of competent jurisdiction be permitted to make in the state in which the main office of Franchisor is located. The arbitrator will also decide any factual, procedural, or legal questions relating in any way to the dispute between the parties, including, but not limited to: any decision as to whether Article 25.14 is applicable and enforceable as against the parties, subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement.
- 25.12.2.5.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, any disputes that are not resolved through mediation must be submitted to binding arbitration, adhering to the Federal Arbitration Act. The arbitration will be managed by the American Arbitration Association (AAA) following its Commercial Arbitration Rules, utilizing a single arbitrator. Any claims that would be considered compulsory counterclaims must be submitted within the same proceeding, or they will be barred.
The arbitration is to be conducted on an individual basis, with no authority to proceed with class actions or consolidate claims with third parties. Should this limitation on joinder or class action be deemed unenforceable, the agreement to arbitrate becomes void, and claims must be submitted to the courts. The arbitration must occur in the city closest to All County's headquarters at the time of the dispute.
The arbitrator is required to follow the law and the terms of the franchise agreement, possessing at least five years of experience in commercial law. Settlement discussions or offers are not to be considered by the arbitrator. The arbitrator cannot stay any pending termination of the agreement, assess punitive damages, certify a class action, or modify any lawful term of the agreement.
The arbitrator has the power to determine procedural matters as would a court in the state where All County's main office is located. They can also decide on factual, procedural, or legal questions related to the dispute, including issues of applicability, subject matter, timeliness, scope, remedies, and fraud. The arbitrator can issue summary orders, temporary restraining orders, injunctions, and other equitable relief, with each party consenting to the enforcement of such orders by any court having jurisdiction. The entire arbitration proceeding will remain confidential, and the arbitrator's judgment will be final and binding, subject to entry in any court having jurisdiction.