How many arbitrators are selected for a Camp Margaritaville arbitration, and how are they chosen?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If the Parties are not able to appoint a Mediator or, if they have appointed one, and fail to reach a mutual agreement based on the steps set forth above, within twenty (20) days following the Parties' decision to mediate, any Party may then submit the dispute for binding arbitration to the AAA office in Palm Beach, Florida. The then-existing commercial arbitration rules of AAA shall, except as set forth below, be utilized in resolving the dispute:
- (i) Each Party shall select one (1) independent and impartial arbitrator from the AAA panel in Palm Beach, Florida. Within ten (10) days of the date upon which the last of those two (2) arbitrators is selected, the two (2) arbitrators shall select a third arbitrator by mutual agreement;
- (ii) If the third arbitrator cannot be selected in the manner described in Subparagraph (i), above, then each Party shall submit to AAA in Palm Beach, Florida the name of one (1) additional arbitrator, and the senior administrative officer in the Palm Beach, Florida office of AAA, shall select one of those two (2) proposed arbitrators as the third arbitrator;
- (iii) The arbitration shall take place in Palm Beach, Florida at a location to be decided by majority vote of the arbitrators;
- (iv) The arbitrators must conduct the arbitration and render their decision or award within one hundred and twenty (120) calendar days of their selection;
- (v) The arbitration shall be binding and not be subject to reversal by any court, except for acts of misconduct by an arbitrator;
- (vi) The arbitrators' decision must be in writing; and
- (vii) Either Party to this Agreement may apply to any court of competent jurisdiction to enforce an arbitration order.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, disputes can be resolved through binding arbitration. The standard process involves three arbitrators, unless both parties agree to use only one. Each party involved in the dispute selects one independent and impartial arbitrator from the American Arbitration Association (AAA) panel in Palm Beach, Florida. After these two arbitrators are chosen, they then mutually select a third arbitrator.
If the first two arbitrators cannot agree on a third arbitrator, each party submits the name of an additional arbitrator to the AAA in Palm Beach, Florida. The senior administrative officer of the AAA's Palm Beach office then selects one of the two proposed arbitrators to serve as the third arbitrator. This third arbitrator also acts as the chairperson of the arbitration panel.
The arbitration proceedings will be held in Palm Beach, Florida, at a location determined by a majority vote of the arbitrators. The arbitrators are required to conduct the arbitration and make their decision within 120 calendar days of their selection. The decision reached through arbitration is binding and cannot be overturned by any court, except in cases of misconduct by an arbitrator.