Does the Buildingstars contract contain a binding arbitration provision?

According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement contains a binding arbitration provision that may be enforced by the parties. If a dispute arises and the federal court does not have subject matter jurisdiction, the parties will submit to binding arbitration in St. Louis County, MO, unless they mutually agree otherwise. The arbitration will follow the American Arbitration Association (AAA) rules, but the terms of the Buildingstars agreement will take precedence if there are any conflicts. The arbitrator must be mutually selected and have at least 5 years of experience in franchise law. Each party is limited to 25 document requests, 15 interrogatories, and 1 deposition unless otherwise agreed.

If any dispute involves Buildingstars, its affiliates, officers, directors, agents, brokers, or employees, these parties will also be included in the arbitration if they consent. The arbitrator can award any relief deemed proper, including money damages (with interest), specific performance, and attorneys' fees and costs, but cannot award punitive, exemplary, or consequential damages, as these rights are waived by both parties. The arbitrator has exclusive authority to resolve disputes regarding the interpretation, applicability, or enforceability of the arbitration section, including any claims that the section is void or voidable.

The arbitrator's decision is conclusive and binding, and judgment upon the award may be entered in any court of competent jurisdiction. However, the arbitrator cannot stay the effectiveness of any pending termination of the agreement or make any award that extends, modifies, or suspends any lawful term of the agreement. Each party waives the right to contest the validity or enforceability of the arbitrator's award, except as permitted by law. The arbitrator must provide a reasoned award consistent with the agreement's terms. If the award is not reasoned or consistent, Buildingstars may appeal it in Federal or State Court. An arbitration award in any other case, even if Buildingstars was a party, is not binding and has no precedential value.

If a franchisee fails to comply with the dispute resolution provisions, they must reimburse Buildingstars for all expenses incurred in curing the breach, including attorneys' fees and costs, and pay a Dispute Resolution Fee of $50,000. This fee is considered liquidated damages and not a penalty, as the parties agree that calculating the full extent of damages from a breach of the dispute resolution provisions is difficult. Buildingstars can collect these amounts in addition to any other rights they have for non-compliance under the agreement.