Where will arbitration for All Team disputes be conducted if the parties do not mutually agree otherwise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration. In the event that the federal court described above does not have subject matter jurisdiction over the dispute, the parties, subject to all other provisions above, will submit the dispute to binding arbitration conducted in Tampa, FL (unless the parties mutually agree otherwise). The arbitration proceeding will be conducted in accordance with the then current commercial arbitration rules of the American Arbitration Association ("AAA Rules"), except to the extent the AAA Rules differ from the terms of this Agreement, in which event the terms of this Agreement will apply. Notwithstanding the foregoing, the arbitration does not have to be conducted under the AAA. The arbitrator must be mutually selected by the parties and must have at least 5 years of substantial experience in franchise law. Each party will be limited to 25 document requests, 15 interrogatories and 1 deposition unless otherwise agreed to between the parties. For purposes of this Section, if any dispute that names, involves or includes ATFC, it respective affiliates, officers, directors, agents, brokers or employees, such persons or entities shall also be included in and made party to the arbitration proceeding to the extent such parties consent to proceeding forward in arbitration.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a dispute arises and the federal court does not have subject matter jurisdiction, the parties will submit to binding arbitration in Tampa, FL, unless both parties agree to a different location. This arbitration will follow the American Arbitration Association's commercial arbitration rules, but the terms of the Franchise Agreement will take precedence if there are any conflicts.
It is important to note that the arbitration does not necessarily have to be conducted under the AAA. The arbitrator selected must be mutually agreed upon by both parties and possess at least five years of experience in franchise law. To ensure efficiency, each party is limited to 25 document requests, 15 interrogatories, and one deposition, unless they agree otherwise.
Furthermore, if the dispute involves All Team Franchise Corp (ATFC), its affiliates, officers, directors, agents, brokers, or employees, these entities will also be included in the arbitration, provided they consent to participate. This clause ensures that all related parties can be part of the resolution process, potentially streamlining the proceedings and avoiding multiple legal actions. This arbitration clause is a standard practice in franchising to resolve disputes outside of court, potentially saving time and legal costs, but it is crucial for franchisees to understand the specific terms and limitations outlined in the agreement.