How many arbitrators will conduct the arbitration proceedings for Anago disputes?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days of receipt of the notice of intent to initiate arbitration, the receiving party may request the other party to provide additional information and documents to resolve the controversy, dispute, or claim. Franchisor and Subfranchisor will make commercially reasonable effort to resolve the controversy, dispute, or claim internally within sixty (60) days ("Internal Dispute Resolution Deadline") of submission of all information reasonably requested by the receiving party, unless the parties mutually agree to extend the Internal Dispute Resolution Deadline. If any such controversy, dispute, or claim is not resolved internally as described above then Franchisor and Subfranchisor agree that such controversy, dispute, or claim between Franchisor or Franchisor's affiliates, and Franchisor and their respective shareholders, officers, directors, agents, and employees, on the one hand, and Subfranchisor (and Subfranchisor's owners, guarantors, affiliates, and employees), on the other hand, must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association. The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association. All proceedings will be conducted at a suitable location chosen by the arbitrator in or within 50 miles of Franchisor's then-current principal place of business (currently, Pompano Beach, Florida). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, arbitration proceedings will be conducted by a single arbitrator. This process is initiated after a notice of intent to arbitrate is submitted, allowing the receiving party 30 days to request additional information for dispute resolution. Anago and the subfranchisor then have 60 days to resolve the issue internally.
If internal resolution fails, the dispute is submitted to the American Arbitration Association for binding arbitration. The arbitrator's location will be within 50 miles of Anago's principal place of business, which is currently Pompano Beach, Florida. The arbitration is governed by the Federal Arbitration Act, and judgment on the arbitrator's award can be entered in any competent court.
This single arbitrator arrangement can be beneficial for franchisees by potentially reducing the complexity and cost associated with arbitration, compared to panels of multiple arbitrators which are sometimes used in franchise agreements. However, franchisees should be aware that all proceedings will occur near Anago's headquarters, which may increase travel costs for franchisees located further away.