If mediation fails, where must the Carbones Pizzeria dispute be submitted for arbitration?
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.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if mediation is unsuccessful in resolving a dispute, the matter must be submitted to arbitration in Hennepin County, Minnesota. This arbitration will be conducted under the Rules of the American Arbitration Association and will involve a panel of three arbitrators.
Each party involved in the dispute will choose one member of the arbitration panel. The two arbitrators selected by the parties will then jointly choose the third member of the panel. It is specifically stipulated that the mediator from the previous mediation attempt cannot be selected as one of the arbitrators.
Each party is responsible for paying one-half of the arbitration costs, as well as their own attorney fees and costs associated with the arbitration. This arrangement ensures that both parties share the financial burden of the arbitration process equally. The arbitrator selected must have at least ten years of experience in franchise matters.