Are the JAMS rules modified in any way when arbitrating a dispute with Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT AS SET FORTH IN SECTIONS 23.3 AND 23.4 BELOW AND IN SUBSECTION 23.2.5, ANY CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT (INCLUDING BUT NOT LIMITED TO ANY CLAIM THAT THE AGREEMENT OR ANY OF ITS PROVISIONS IS INVALID, ILLEGAL, OR OTHERWISE VOIDABLE OR VOID), THE RELATIONSHIP BETWEEN YOU, YOUR OWNERS AND AFFILIATES AND US OR OUR AFFILIATES, OR YOUR OPERATION OF THE FRANCHISED BUSINESS, SHALL BE SUBMITTED TO JAMS FOR MANDATORY, FINAL AND BINDING ARBITRATION. THE ARBITRATION WILL BE CONDUCTED
IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT, 9 U.S.C., SECTION 1, ET SEQ., AND THE COMMERCIAL ARBITRATION RULES OF JAMS IN EFFECT AT THE TIME OF FILING OF THE DEMAND FOR ARBITRATION (THE "JAMS RULES"), EXCEPT AS THE JAMS RULES MAY BE MODIFIED BY THE FOLLOWING:
- 23.2.1 The seat of arbitration will be the JAMS office closest to Columbia, Maryland, and all arbitration hearings shall take place at that office.
We have the right to designate headquarters for the Brand at a location other than Columbia, Maryland and to substitute that location for Columbia, Maryland for purposes of this Section.
- 23.2.2 The arbitration will be conducted, heard and decided by one (1) arbitrator ("Arbitrator") who is mutually agreeable to the parties.
If the parties have not agreed on the Arbitrator within thirty (30) days after filing of the arbitration demand with JAMS, the Arbitrator shall be appointed in accordance with the JAMS Rules.
23.2.3 The Arbitrator shall not entertain or permit any class or consolidated proceeding.
23.2.4 The administrative fees of JAMS and the Arbitrator's fees will be split equally between Franchisor and Franchisee.
23.2.5 If either party fails to pay its share of any fee required by JAMS to proceed with administration of the arbitration, and if the other party has paid its own share of the fee, the Arbitrator shall enter a default judgment in favor of the latter party.
If an Arbitrator has not yet been appointed at the time of the nonpayment of the required fee, the party that has paid its own share of the fee shall have the option to have a default judgment entered in its favor or to proceed in court on the claims submitted to arbitration.
- 23.2.6 The Arbitrator will not have the authority to add to, delete, or modify the terms of this Agreement.
All findings, judgments, decisions and awards of the Arbitrator will be limited to the claims set forth in the arbitration demand and any counterclaims, as they may be amended, and the Arbitrator will not have the authority to decide any other claims.
The Arbitrator will have the power to decide any or all of the issues, claims and defenses presented in the arbitration through summary judgment, summary disposition, or dismissal proceedings without a full evidentiary hearing or witness testimony, as long as all parties are permitted to submit memoranda and affidavits and have oral argument, either in person or by telephone, if the Arbitrator determines that oral argument would assist in the decision making process.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the JAMS (Judicial Arbitration and Mediation Services) rules are modified for arbitrating disputes. While arbitration is generally mandatory, several specific modifications are outlined that affect how the process is conducted.
The FDD specifies that the arbitration seat will be the JAMS office closest to Columbia, Maryland, although Benjamin Franklin Plumbing retains the right to change the headquarters location, which would then become the designated arbitration seat. The arbitration will be conducted by a single arbitrator who must be mutually agreed upon by both parties. If an arbitrator cannot be agreed upon within 30 days of filing the arbitration demand, JAMS rules will be used to appoint one.
Furthermore, the arbitrator is not permitted to entertain any class or consolidated proceedings, and they lack the authority to alter the terms of the franchise agreement. The administrative and arbitrator fees are to be split equally between Benjamin Franklin Plumbing and the franchisee. If either party fails to pay their share of the required fees, the arbitrator is instructed to enter a default judgment in favor of the party that did pay. The arbitrator's decisions are limited to the claims made in the arbitration demand and any counterclaims, and they can use summary judgment or dismissal proceedings if appropriate, provided all parties can submit arguments and affidavits.