On what basis will arbitration be conducted for All Team disputes?
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.
The arbitrator will have the right to award or include in his award any relief which he deems proper in the circumstances, including money damages (with interest on unpaid amounts from date due), specific performance, and attorneys' fees and costs; however, the arbitrator will not be allowed to award or include in his award any punitive, exemplary, or consequential damages, to which the parties waive any right. The arbitrator, and not any federal, state, or local court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, or enforceability of this Section, including but not limited to, any claim that all or any part of this Section is void or voidable. The award and decision of the arbitrator will be conclusive and binding upon all parties, and judgment upon the award may be entered in any court of competent jurisdiction; however, the arbitrator may not under any circumstances: (1) stay the effectiveness of any pending termination of this Agreement; or (2) make any award which extends, modified or suspends any lawful term of this Agreement. Each party waives any right to contest the validity or enforceability of the award of an arbitrator under this Section except to the extent permitted by applicable law. The arbitrator must submit a reasoned award and this award must be consistent with the terms of this Agreement. If the arbitrator's award is not reasoned or not consistent with the terms of this Agreement, then notwithstanding the foregoing, ATFC may appeal the arbitration award in Federal or State Court. An arbitration award or decision entered in any other case (whether or not ATFC was a party) will not be binding on ATFC in any other dispute, will have no precedential value and cannot be used as evidence in any other proceeding.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, arbitration will be conducted based on the commercial arbitration rules of the American Arbitration Association (AAA), but the terms of the Franchise Agreement will take precedence if there are any conflicts between the AAA rules and the agreement. However, the arbitration does not have to be conducted under the AAA. The arbitration will occur in Tampa, Florida, unless both parties agree to a different location. The arbitrator selected must be mutually agreed upon by both parties and possess at least five years of experience in franchise law.
All Team limits discovery in arbitration to 25 document requests, 15 interrogatories, and one deposition per party, unless both parties agree to additional discovery. The arbitrator is authorized to award appropriate relief, including monetary damages with interest, specific performance, and attorney's fees and costs. However, the arbitrator cannot award punitive, exemplary, or consequential damages, as these are waived by both parties. The arbitrator has the exclusive authority to resolve disputes regarding the interpretation, applicability, or enforceability of the arbitration section, including any claims that the section is void or voidable.
The arbitrator's award is conclusive and binding, and judgment upon the award may be entered in any court of competent jurisdiction. However, the arbitrator cannot stay the termination of the agreement or make any award that extends, modifies, or suspends any lawful term of the agreement. Each party waives the right to contest the validity or enforceability of the arbitrator's award, except as permitted by law. The arbitrator must provide a reasoned award consistent with the terms of the agreement. All Team retains the right to appeal the arbitration award in Federal or State Court if the arbitrator's award is not reasoned or consistent with the agreement's terms. An arbitration award in another case, even if All Team was a party, is not binding and has no precedential value.