Which organization conducts the binding arbitration for C3 Wellness Spa disputes?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
(2) Arbitration – Subject to the prerequisite requirements of non-binding mediation as set forth in Sub-Section 7.6(1), and, except, at Franchisor's election, as to any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief, Franchisor and Franchisee agree that all disputes, controversies, and claims, arising from and/or related to this Agreement, the relationship between Franchisor and Franchisee, the System, and/or the validity of this Agreement and/or the Ancillary Agreements, shall be submitted, on demand of either Franchisor or Franchisee, to the AAA for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with the AAA's then current rules for commercial disputes, except as may be otherwise required in this Section 7.6. All arbitration proceedings shall be conducted in Osceola County, Florida or, if suitable AAA facilities are not available in Osceola County, Florida then at a suitable AAA location selected by the arbitrator that is located closest to Osceola County, Florida.
In connection with binding arbitration, Franchisor and Franchisee further agree that:
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, all disputes, controversies, and claims arising from the franchise agreement, the relationship between the franchisor and franchisee, the C3 Wellness Spa system, and the validity of the agreement will be submitted to the American Arbitration Association (AAA) for binding arbitration if either the franchisor or franchisee demands it.
The arbitration will be conducted by a single arbitrator following the AAA's rules for commercial disputes, unless otherwise specified in Section 7.6 of the agreement. Unless suitable AAA facilities are available in Osceola County, Florida, all arbitration proceedings will take place there or at a suitable AAA location selected by the arbitrator that is closest to Osceola County, Florida.
Prior to initiating arbitration, both parties must participate in non-binding mediation facilitated by the AAA, according to its mediation rules for commercial disputes. The mediation will also occur in Osceola County, Florida, or a nearby location selected by the mediator. Each party will cover their own mediation costs and split the mediator's and AAA's fees equally. However, the franchisor can elect to bypass mediation for claims related to a franchisee's breach that could entitle the franchisor to injunctive relief, or for claims regarding the failure to pay fees or other monetary obligations under the agreement.