If the Federal District Court does not have jurisdiction, how will disputes between Buildingstars and the franchisee be resolved?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Arbitration. In the event that the federal court described above does not have subject matter jurisdiction over the dispute, the parties, subject to all other provisions above, will submit the dispute to binding arbitration conducted in St. Louis County, MO (unless the parties mutually agree otherwise). The arbitration proceeding will be conducted in accordance with the then current commercial arbitration rules of the American Arbitration Association ("AAA Rules"), except to the extent the AAA Rules differ from the terms of this Agreement, in which event the terms of this Agreement will apply. Notwithstanding the foregoing, the arbitration does not have to be conducted under the AAA. The arbitrator must be mutually selected by the parties and must have at least 5 years of substantial experience in franchise law. Each party will be limited to 25 document requests, 15 interrogatories and 1 deposition unless otherwise agreed to between the parties. For purposes of this Section, if any dispute that names, involves or includes BUILDINGSTARS, it respective affiliates, officers, directors, agents, brokers or employees, such persons or entities shall also be included in and made party to the arbitration proceeding to the extent such parties consent to proceeding forward in arbitration.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if the Federal District Court in St. Louis, MO, does not have jurisdiction over a dispute between Buildingstars and a franchisee, the dispute will be submitted to binding arbitration. This arbitration will take place in St. Louis County, MO, unless both parties agree to a different location.
The arbitration proceedings will follow the then-current commercial arbitration rules of the American Arbitration Association (AAA). However, if the AAA rules conflict with the terms outlined in the Buildingstars franchise agreement, the agreement's terms will take precedence. It is important to note that the arbitration does not necessarily have to be conducted under the AAA.
The arbitrator selected must be mutually agreed upon by both parties and possess at least five years of experience in franchise law. To ensure efficiency, each party is limited to 25 document requests, 15 interrogatories, and one deposition, unless both parties agree to modify these limitations. Furthermore, if the dispute involves Buildingstars, its affiliates, officers, directors, agents, brokers, or employees, these individuals or entities will also be included in the arbitration proceeding, provided they consent to participate.