Under what rules will the arbitration proceedings be conducted for Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
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; provided, however, the arbitrator(s) may not under any circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance set by Franchisor.
This Section 17 will survive termination or nonrenewal of this Agreement under any circumstances.
Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction thereof.
During any arbitration proceeding, Franchisor and Multiple Unit Franchisee will fully perform their respective obligations under this Agreement.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, arbitration proceedings will be conducted under specific rules. The proceedings will follow the Commercial Arbitration Rules of the American Arbitration Association, or the rules of another arbitration services organization, if both parties agree to it in writing. However, these rules apply only if they do not conflict with the arbitration provision outlined in the franchise agreement or the Federal Arbitration Act.
Several limitations are placed on the arbitrator's authority. The arbitrator cannot select a different hearing location, and they must possess a minimum of five years of experience in franchising or distribution law. The arbitrator is authorized to award specific performance of the agreement, ensuring that the terms of the contract are fulfilled.
The arbitrator's decision is considered final and binding for all parties involved. However, the arbitrator is restricted from taking certain actions: they cannot halt any pending termination of the agreement, award 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. This section regarding arbitration survives any termination or nonrenewal of the agreement.
Furthermore, any arbitration proceeding cannot be combined with other arbitration proceedings, and a Multiple Unit Franchisee is prohibited from joining their claims with those of another party. During the arbitration, both Batteries Plus Bulbs and the franchisee must continue to fulfill their obligations under the agreement.