Are the results of arbitration final and binding for both parties under the Big O Tires plan?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
29.03. Arbitration Award. Subject to Section 29.07 below, the arbitrator will have the right to award or include in the award any relief available and appropriate under applicable law (as set forth in Section 29.06) and this Agreement. Any award shall be based on established law and shall not be made on broad principles of justice and equity. The award and decision of the arbitrator will be conclusive and binding upon all parties hereto and judgment upon the award may be entered in any court of competent jurisdiction. This provision will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
29.04. Limitations on Proceedings.
- (a) Big O and Franchisee agree that arbitration will be conducted on an individual basis only.
Neither party shall commence any arbitration with a third party against the other, or join with any third party in any arbitration involving Big O and Franchisee.
Further, neither Big O nor Franchisee shall attempt to consolidate or otherwise combine in any manner an arbitration proceeding involving Big O and Franchisee with another arbitration of any kind, nor shall Big O or Franchisee attempt to certify a class or participate as a party in a class action against the other.
- (b) The foregoing notwithstanding, in the event Franchisee controls, is controlled by or is in active concert with another franchisee, distributor, or area developer of Big O, or there is a guarantor of some or all of the Franchisee's obligations to Big O, then the joinder of those parties to any arbitration between Big O and Franchisee shall be permitted, and in all events, the joinder of an owner, director, officer, manager, partner or other representative or agent of Big O or Franchisee shall be permitted.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the arbitration award is conclusive and binding upon all parties. Following a decision by the arbitrator, a judgment upon the award may be entered in any court of competent jurisdiction. This agreement remains effective even after the expiration or termination of the franchise agreement.
Big O Tires and the franchisee agree that arbitration will be conducted on an individual basis only. Neither party can start arbitration with a third party against the other or join with a third party in any arbitration involving Big O Tires and the franchisee. Furthermore, neither Big O Tires nor the franchisee can consolidate or combine an arbitration proceeding involving them with another arbitration of any kind. They also cannot attempt to certify a class or participate as a party in a class action against the other.
However, if the franchisee controls, is controlled by, or is in active concert with another Big O Tires franchisee, distributor, or area developer, or if there is a guarantor of the franchisee's obligations to Big O Tires, the joinder of those parties to any arbitration between Big O Tires and the franchisee is permitted. Additionally, the joinder of an owner, director, officer, manager, partner, or other representative or agent of Big O Tires or the franchisee is allowed.