Who appoints the arbitrator for disputes related to the Bath Tune Up franchise agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Except disputes not subject to alternative dispute resolution as described in Section 11.2 above, any dispute between Franchisor or any of its Affiliates (on the one hand) and Franchisee or any of its Affiliates (on the other hand) arising out of or relating to this Agreement or its breach, including any claim that this Agreement or any of its parts, is invalid, illegal or otherwise voidable or void, which has not been resolved in accordance with Section 11.3 above, will be resolved by submission to arbitration conducted by a single impartial arbitrator appointed by JAMS according to its Comprehensive Arbitration Rules and Procedures, or any other single impartial arbitrator mutually agreed to by the parties.
- (b) All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained in this Section 11 will be governed by the Federal Arbitration Act (9 U.S.C. 1 et seq.) and the federal common law of arbitration. All hearings and other proceedings will take place in Brown County, South Dakota, or if Franchisor so elects, in the county where the principal place of business of Franchisee is then located. The fees of the arbitrator will be borne equally by Franchisor and Franchisee, and all other expenses relating to the arbitration will be borne by the party incurring them.
- (c) This arbitration provision is self-executing and will remain in full force and effect after expiration or termination of this Agreement. Any arbitration will be conducted on an individual, and not a class-wide or multiple plaintiffs, basis. If either party fails to appear at any properly-noticed arbitration proceeding, an award may be entered against the party by default or otherwise in spite of the failure to appear. Judgment upon an arbitration award may be entered in any court having jurisdiction and will be binding, final, and not subject to appeal. No punitive or exemplary damages will be awarded against Franchisor, Franchisee, or entities related to either of them, in an arbitration proceeding or otherwise, and are waived.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, any disputes arising from the franchise agreement that are not resolved through other means will be settled through arbitration. The arbitrator will be a single, impartial individual. JAMS (Judicial Arbitration and Mediation Services) appoints the arbitrator according to its Comprehensive Arbitration Rules and Procedures, unless both Bath Tune Up and the franchisee mutually agree on a different arbitrator.
This means that if a Bath Tune Up franchisee has a disagreement with the franchisor that cannot be resolved informally, the dispute will be decided by a neutral third party. The arbitration process aims to provide a more efficient and cost-effective alternative to traditional litigation. However, the franchisee does have the option to agree to a different arbitrator than one appointed by JAMS.
The arbitration hearings will take place in Brown County, South Dakota, or, if Bath Tune Up chooses, in the county where the franchisee's principal place of business is located. The fees for the arbitrator are split equally between Bath Tune Up and the franchisee, while other arbitration-related expenses are the responsibility of the party that incurs them. This arrangement is fairly typical in franchise agreements, where both parties share the costs of dispute resolution.
The arbitration provision remains in effect even after the franchise agreement expires or terminates. Any arbitration will be conducted on an individual basis, not as part of a class action. The document also specifies that punitive or exemplary damages will not be awarded against either party in an arbitration proceeding.