If mediation fails, where will arbitration take place for a Carbones Pizzeria franchise dispute?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. If the parties are unable to resolve their dispute through mediation, the matter shall be submitted to arbitration in Hennepin County, Minnesota, under the Rules of the American Arbitration Association with a three (3) panel arbitrator to be established, none of which shall be the previous mediator, with each party choosing one (1) member of the panel and the remaining third party chosen by the two (2) arbitrators previously selected.
Each party shall pay one-half of the cost of the arbitration and their own attorney fees and costs, if any.
Any arbitrator appointed to arbitrate a dispute under this Agreement shall have at least ten (10) years' experience in franchise matters and shall have the right to award, or include in any award, the specific performance of this Agreement.
The arbitrator will be instructed that he or she must follow the substantive law and the other requirements, waivers and limitations of this Agreement.
The arbitrator shall have no authority to add, delete or modify in any manner, the terms and provisions of this Agreement and may not excuse performance of a material term of this Agreement.
However, if an arbitrator determines that any contractual limitations period provided for in this Agreement is not applicable or enforceable, then the parties agree to be bound by the provision of any statute of limitations which would otherwise be applicable to the controversy, dispute or claim which is the subject of any arbitration proceeding initiated hereunder.
The arbitrator is expressly prohibited from determining whether class, mass, collective or consolidated relief is permitted hereunder or from awarding the same.
All findings, judgments, decisions and awards of the arbitrator shall be limited to the dispute or controversy set forth in the written demand for arbitration and response to that demand.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if mediation does not resolve a dispute, the matter will be submitted to arbitration in Hennepin County, Minnesota. The arbitration will be conducted under the Rules of the American Arbitration Association, utilizing a three-member panel. Each party involved in the dispute will choose one member of the panel, and those two arbitrators will then select the third member.
Each party is responsible for paying one-half of the arbitration costs, as well as their own attorney fees and costs, if any. The arbitrator selected must have at least ten years of experience in franchise matters and has the authority to enforce specific performance of the agreement as part of any award. The arbitrator is required to follow the substantive law, requirements, waivers, and limitations outlined in the franchise agreement.
The arbitrator cannot alter the terms of the agreement or excuse performance of any material term. However, if any contractual limitations period is deemed unenforceable, the parties agree to be bound by the applicable statute of limitations. The arbitrator is prohibited from determining whether class, mass, collective, or consolidated relief is permitted or from awarding such relief. All findings, judgments, decisions, and awards are limited to the specific dispute outlined in the written demand for arbitration.