If the AAA Rules differ from the All Team franchise agreement, which terms will apply?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
C. 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 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, both mediation and arbitration proceedings will be conducted in accordance with the American Arbitration Association (AAA) rules. However, if there are any conflicts between the AAA rules and the terms outlined in the All Team franchise agreement, the terms of the franchise agreement will take precedence.
This means that while All Team aims to utilize the established procedures of the AAA for dispute resolution, the specific contractual obligations and rights defined in the franchise agreement will ultimately govern the process. This ensures that the unique aspects of the All Team franchise relationship are upheld during dispute resolution.
For a prospective All Team franchisee, this clause provides clarity and assurance that the terms they agreed to in the franchise agreement will not be superseded by the general rules of the AAA in case of a dispute. It is important for franchisees to thoroughly understand the terms of the franchise agreement, as these will be the primary reference point in any mediation or arbitration proceedings.