What arbitration association is specified for disputes involving Buns On Fire?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Either of us, as plaintiff, may choose to submit a dispute to a court or to arbitration administered by the American Arbitration Association ("AAA") under its Commercial Arbitration Rules (or by another nationally established arbitration association acceptable to you and us) and under the Federal Rules of Evidence. The plaintiff's election to arbitrate or to submit the dispute to the court system, including any compulsory counterclaims, is binding on the parties except that we shall have the option to submit to a court any of the following actions: to collect fees due under this Agreement; for injunctive relief; to protect our intellectual property, including Proprietary Marks; and to terminate this Agreement for a default. For any arbitration, the arbitrator(s) shall issue a reasoned award, with findings of fact and conclusions of law. The arbitration award and the decision on any appeal will be conclusive and binding on the parties. Actions to enforce an express obligation to pay money may be brought under the Expedited Procedures of the AAA's Commercial Arbitration Rules. The place of arbitration shall be in the state in which the Restaurant is located. The Federal Arbitration Act shall govern, excluding all state arbitration law. Massachusetts's law shall govern all other issues.
Disputes concerning the validity or scope of this Section, including whether a dispute is subject to arbitration, are beyond the authority of the arbitrator(s) and shall be determined by a court of competent jurisdiction pursuant to the Federal Arbitration Act, 9 U.S.C. §1 et seq., as amended from time to time. The provisions of this Section shall continue in full force and effect subsequent to any expiration or termination of this Agreement.
Either of us may appeal the final award of the arbitrator(s) to the appropriate U.S. District Court. The Court's review of the arbitrator's findings of fact shall be under the clearly erroneous standard, and the Court's review of all legal rulings shall be de novo. If it is determined that this provision for federal court review is not enforceable, then either party may appeal the arbitrator's final award to a panel of three arbitrators chosen under AAA procedures, employing the same standards of review stated immediately above.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, disputes can be submitted to arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules. Alternatively, another nationally established arbitration association acceptable to both parties may be used. The plaintiff's choice of arbitration or court submission is binding, with a few exceptions that allow Buns On Fire to pursue actions in court. These exceptions include collecting fees, seeking injunctive relief, protecting intellectual property, and terminating the agreement due to default.
For any arbitration, the arbitrator(s) must provide a reasoned award with findings of fact and conclusions of law. The arbitration award and any appeal decisions are conclusive and binding. Actions to enforce payment obligations can be brought under the Expedited Procedures of the AAA's Commercial Arbitration Rules. The location for arbitration is set in the state where the Buns On Fire restaurant is located, and the Federal Arbitration Act governs the arbitration process, excluding state arbitration laws. Massachusetts law governs all other issues.
Disputes regarding the validity or scope of the arbitration section, including whether a dispute is subject to arbitration, fall outside the arbitrator's authority and must be determined by a court of competent jurisdiction under the Federal Arbitration Act. Either party has the right to appeal the arbitrator's final award to the appropriate U.S. District Court. The court's review of factual findings will be under the clearly erroneous standard, and legal rulings will be reviewed de novo. If federal court review is deemed unenforceable, either party can appeal to a panel of three arbitrators chosen under AAA procedures, using the same standards of review.