What experience level is required for the arbitrator selected for All Team franchise 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.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, any dispute that cannot be resolved in federal court will be submitted to binding arbitration. The arbitrator selected by All Team and the franchisee must have at least 5 years of substantial experience in franchise law. The arbitration proceedings will be conducted in Tampa, FL, unless both parties agree to a different location.
The arbitration will follow the American Arbitration Association (AAA) rules, but if those rules conflict with the franchise agreement, the agreement's terms will take precedence. It's important to note that the arbitration doesn't necessarily have to be conducted under the AAA. Each party is limited to 25 document requests, 15 interrogatories, and one deposition unless they agree otherwise.
This requirement ensures that the arbitrator has sufficient expertise in franchise law to understand the complexities of the All Team franchise agreement and relevant legal precedents. This can be beneficial for a franchisee as it increases the likelihood of a fair and informed decision in case of a dispute. However, franchisees should still consult with their own legal counsel to navigate the arbitration process effectively.