What rules and procedures govern the arbitration process for Bath Tune Up franchise disputes?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
11.4. Arbitration
- (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 the 2025 Bath Tune Up Franchise Disclosure Document, any disputes arising from the franchise agreement that cannot be resolved through mediation will be settled through arbitration. The arbitration will be conducted by a single impartial arbitrator appointed by JAMS (Judicial Arbitration and Mediation Service) or another mutually agreed-upon arbitrator, following JAMS' Comprehensive Arbitration Rules and Procedures.
The Federal Arbitration Act governs all issues related to the enforceability of the arbitration agreement. Arbitration hearings will take place in Brown County, South Dakota, unless Bath Tune Up elects to hold them in the county where the franchisee's principal place of business is located. The costs for the arbitrator are to be split equally between Bath Tune Up and the franchisee, while each party is responsible for their own additional expenses related to the arbitration.
The arbitration provision remains effective even after the franchise agreement expires or terminates. All arbitration will be conducted on an individual basis, meaning no class-wide or multiple plaintiffs are allowed. Failure to attend a properly-noticed arbitration proceeding may result in a default judgment against the absent party. The arbitration award is binding, final, and not subject to appeal, and judgment upon the award may be entered in any court having jurisdiction. Punitive or exemplary damages are waived for both Bath Tune Up and the franchisee in any arbitration proceeding.