What qualifications must the arbitrator possess in a Belocal franchise dispute?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The parties agree that, to the extent that any disputes cannot be resolved directly between Franchisee and Franchisor, and following compliance with the applicable mediation requirements set forth in Section 14.B. above, any dispute, controversy, or claim arising out of, in connection with, or relating to this Agreement, and the relationships created hereby; or the formation, interpretation, breach, termination, or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, must be resolved by arbitration. The arbitration must be administered in accordance with the Commercial Rules of the AAA. There shall be one arbitrator. The arbitrator must be experienced in franchising or franchise law and have no prior business or professional relationship with either party. All matters relating to arbitration shall be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) ("FAA"). The parties intend and agree that any state laws attempting to prohibit arbitration or void out-ofstate forums for arbitration are preempted by the FAA and that arbitration shall be held as provided in this Section 14.C. The arbitrator must provide a reasoned award in writing. The award rendered by the arbitrator shall be final, and judgment may be entered thereon in any court having jurisdiction thereof.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, any dispute that cannot be resolved directly between the franchisee and Belocal, and after compliance with mediation requirements, must be resolved by arbitration administered in accordance with the Commercial Rules of the AAA. The agreement specifies that there will be one arbitrator.
The arbitrator selected must have experience in franchising or franchise law. Additionally, the arbitrator must have no prior business or professional relationship with either the franchisee or Belocal. This requirement ensures impartiality in the arbitration process.
The arbitration will take place in the city where Belocal maintains its principal business office at the time of the arbitration. The arbitrator is required to provide a reasoned award in writing, and the award rendered will be final, with judgment possibly entered in any court having jurisdiction. These measures aim to provide a fair and legally sound resolution to disputes, with an emphasis on expertise and impartiality in the field of franchising.