What costs and expenses are each party responsible for during arbitration for a Big O Tires franchise?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
29.02 Arbitration. Except for actions related to or based on the Marks or the copyrights in the Materials or to enforce the provisions of Article 20 of this Agreement, which Big O, may bring in a court of competent jurisdiction, all Claims will be submitted for binding arbitration on demand of either party to either the Judicial Arbiter Group or the AAA, as selected by the party submitting the demand. Notwithstanding the language above, if the action is based on a separate agreement or instrument between Franchisee and Big O, such as a promissory note or lease, the dispute resolution procedure in that agreement or instrument will control rather than this Section 29.02; provided, that, at Big O's sole option, any claim of Big O against Franchisee based on a promissory note executed by Franchisee in favor of Big O may be brought in arbitration in conjunction with a dispute between the parties that is subject to arbitration under this Section, regardless of any provisions to the contrary contained in the promissory note. Arbitration proceedings will be conducted in Denver, Colorado and will be heard by one arbitrator in accordance with the then current rules of AAA that apply to commercial arbitration. The decision as to whether a claim is subject to mandatory arbitration shall be made by an arbitrator, not a court, except that the decision whether the arbitration may proceed as a class action shall be made by the court. The arbitration proceeding and all other hearings shall be conducted in English only, although Franchisee shall have the right, at Franchisee's option and sole expense, to have a translator present at the proceeding or other hearings. The expense of a translator shall not be considered a cost or expense related to an action pursuant to Section 29.07(b) of this Agreement. The parties further agree that, in connection with any such arbitration proceeding, each will file any compulsory counterclaim, as defined by Rule 13 of the Federal Rules of Civil Procedure, within 30 days after the date of the filing of the claim to which it relates. Any party to an arbitration proceeding may apply to the arbitrator for reasonable discovery from the other. In this Agreement "reasonable discovery"
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, in arbitration proceedings, the franchisee has the option to have a translator present at their sole expense. This expense is specifically not considered a cost or expense related to an action pursuant to Section 29.07(b) of the agreement. The arbitration proceedings will be conducted in English, and any costs associated with translation services are the responsibility of the franchisee.
The arbitration proceedings will take place in Denver, Colorado, and be overseen by a single arbitrator following the American Arbitration Association (AAA) rules for commercial arbitration. Either party can demand arbitration through the Judicial Arbiter Group or the AAA. However, Big O Tires can pursue actions related to trademarks, copyrights, or to enforce Article 20 of the agreement in a court of law.
If the dispute arises from a separate agreement, such as a promissory note or lease, the dispute resolution procedure in that specific agreement will take precedence. However, Big O Tires retains the option to include claims against the franchisee based on a promissory note in the arbitration, regardless of conflicting provisions in the note. Both parties are required to file any compulsory counterclaims within 30 days of the initial claim filing, and either party can request reasonable discovery from the other party during the arbitration process.