What law governs the arbitration process for Batteries Plus Bulbs franchise disputes?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
onsin. Any arbitration proceeding may not be consolidated with any other arbitration proceeding, and Multiple Unit Franchisee agrees not to seek joinder of any of its claims with those of any other party. The arbitrator(s) shall have no authority to select a different hearing locale for the arbitration. The arbitrator(s) will have a minimum of five (5) years' experience in franchising or distribution law and will have the right to award specific performance of this Agreement. The proceedings will be conducted under the Commercial Arbitration Rules of the American Arbitration Association, or the rules of such other arbitration services organization as the parties otherwise may agree upon in writing, to the extent such rules are not inconsistent with the provisions of this arbitration provision or the Federal Arbitration Act. The decision of the arbitrator(s) will be final and binding on all parties;
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the Federal Arbitration Act governs the arbitration process, to the extent that its rules are consistent with the arbitration provision outlined in the franchise agreement. The proceedings themselves will be conducted under the Commercial Arbitration Rules of the American Arbitration Association, or the rules of such other arbitration services organization as the parties otherwise may agree upon in writing, provided those rules do not conflict with the agreement or the Federal Arbitration Act.
This means that any disputes arising between Batteries Plus Bulbs and its franchisees will be subject to arbitration under federal law, which favors enforcement of arbitration agreements. However, the specific rules and procedures of the arbitration will primarily follow the guidelines set by the American Arbitration Association, unless both parties agree to use a different organization.
Batteries Plus Bulbs also specifies certain limitations on the arbitrator's authority. The arbitrator cannot stay the effectiveness of any pending termination of the agreement, assess punitive or exemplary damages, or make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Batteries Plus Bulbs. The decision of the arbitrator(s) will be final and binding on all parties, and judgment upon the award may be entered in any court having jurisdiction.