Under what financial condition will the Expedited Procedures of the American Arbitration Association's Commercial Arbitration Rules apply to arbitration involving Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
n this Agreement, without giving effect to its conflict of law principles.
13.2 Binding Arbitration.
(a) All disputes, claims and controversies, whether based on past, present or future events, arising out of or relating to statutory or common law claims, the breach, termination, enforcement, interpretation or validity of any provision of this Agreement, and the determination of the scope or applicability of your agreement to arbitrate any dispute, claim or controversy originating from this Agreement, but specifically excluding any dispute principally related to either party's IP Rights (which will be resolved in litigation before the United States District Court for the Northern District of California), will be determined by binding arbitration in San Francisco, California before a single arbitrator.
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Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Expedited Procedures of the American Arbitration Association's Commercial Arbitration Rules will be used if neither the claim nor any counterclaim exceeds $75,000. This amount excludes interest, attorneys' fees, and arbitration fees and costs.
For a prospective Bonchon franchisee, this means that if a dispute arises that leads to arbitration, and the total amount in dispute (excluding interest, legal fees, and arbitration costs) is $75,000 or less, the arbitration process will follow an expedited procedure. This is designed to resolve smaller disputes more quickly and efficiently than standard arbitration.
Furthermore, if no party's claim exceeds $25,000 (excluding interest, attorneys' fees and arbitration fees and costs), Section E-6 of the Expedited Procedures will apply, or in other cases where the parties agree. This offers an even faster resolution mechanism for smaller claims or when both parties consent. The arbitrator will apply the substantive law of the State of California and of the United States, excluding their conflict or choice of law rules. However, the Federal Arbitration Act will govern any arbitration conducted.