What must a party do before submitting a dispute with Antioch Pizza Shop to binding arbitration?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If the parties are unable to resolve the Dispute pursuant to subsection (a) above, then the parties may submit the Dispute to final and binding arbitration in Chicago, Illinois, administered by JAMS, or its successor, in accordance with the rules and procedures of JAMS then in effect. The parties agree that any and all Disputes that are submitted to arbitration in accordance with this Agreement shall be decided by one (1) neutral arbitrator who is a retired judge or attorney licensed to practice law in Illinois who is experienced in complex commercial transactions. If the parties are unable to agree on an arbitrator, JAMS shall designate
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, before submitting a dispute to binding arbitration, the parties must first attempt to resolve the dispute through an initial method. If this initial method fails to resolve the dispute, then the parties can proceed to submit the dispute to final and binding arbitration.
The arbitration will take place in Chicago, Illinois, and will be administered by JAMS (or its successor) following JAMS' rules and procedures. A single neutral arbitrator, experienced in complex commercial transactions and either a retired judge or an attorney licensed in Illinois, will decide the disputes. If the parties cannot agree on an arbitrator, JAMS will designate one.
This clause is fairly standard in franchise agreements. It aims to encourage parties to resolve disputes informally before resorting to more costly and time-consuming arbitration. Franchisees should be aware of this two-step process and ensure they have made a genuine effort to resolve the issue before initiating arbitration.