Under what rules will 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 the 2025 Batteries Plus Bulbs FDD, 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 mutually agreed-upon arbitration services organization, provided these rules do not conflict with the arbitration provision or the Federal Arbitration Act. The arbitrator(s) must have at least five years of experience in franchising or distribution law and can award specific performance of the agreement. The location of the arbitration hearing cannot be changed by the arbitrator(s). Any arbitration proceeding cannot be combined with other proceedings, and a Multiple Unit Franchisee cannot seek to join their claims with those of another party.
The decision made by the arbitrator(s) is considered final and binding for all parties involved. However, the arbitrator(s) are 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. Both the Franchisor and the Multiple Unit Franchisee are required to continue fulfilling their obligations under the agreement during any arbitration proceeding.
These rules provide a structured framework for resolving disputes through arbitration, ensuring that the process is governed by established standards while also setting clear limitations on the arbitrator's authority. This framework aims to balance the interests of both the franchisor and the franchisee, promoting a fair and efficient resolution process. Prospective franchisees should carefully consider these arbitration terms, as they dictate how disputes with Batteries Plus Bulbs will be resolved, potentially impacting their rights and remedies.