How many arbitrators are on the panel 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.
The arbitrator shall issue a reasoned award.
Judgment upon the award of the arbitrator may be entered in any court having jurisdiction thereof.
The award shall be binding, final, and nonappealable except as permitted under the United States Arbitration Act or for failure of the arbitrator to meet the requirements of this Section.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if mediation fails to resolve a dispute, arbitration will occur in Hennepin County, Minnesota, under the American Arbitration Association rules. The arbitration panel will consist of three arbitrators.
Each party involved in the dispute (Carbones Pizzeria and the franchisee) will choose one member of the panel. The two arbitrators selected by each party will then jointly choose the third arbitrator to complete the panel.
To qualify, each arbitrator must possess at least ten years of experience in franchise matters. The arbitrator is required to follow the substantive law, requirements, waivers, and limitations outlined in the franchise agreement, and must issue a reasoned award. The arbitrator cannot modify the terms of the agreement or excuse performance of a material term, but must adhere to applicable statutes of limitations if contractual limitations are deemed unenforceable. The arbitrator is prohibited from determining or awarding class, mass, collective, or consolidated relief. The arbitrator's findings are limited to the issues in the arbitration demand, and the award is binding and nonappealable, except as permitted by the United States Arbitration Act or for failure to meet the requirements of the agreement.