Can the previous mediator be part of the arbitration panel for a Carbones Pizzeria 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.
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, the matter will proceed to arbitration in Hennepin County, Minnesota, under the American Arbitration Association rules. The arbitration panel will consist of three arbitrators.
Importantly, the FDD explicitly states that the previous mediator cannot be one of the arbitrators. Each party involved in the dispute will choose one member of the panel, and the two arbitrators selected by the parties will then choose the third arbitrator.
This arrangement ensures impartiality in the arbitration process, preventing the mediator, who has already attempted to facilitate a resolution, from having a direct influence on the arbitration decision. The selected arbitrators must have at least ten years of experience in franchise matters. This requirement aims to ensure that the arbitrators have sufficient expertise to understand the complexities of franchise disputes and to make informed decisions.