Under what rules will arbitration be conducted 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.
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, following the American Arbitration Association rules. A three-person panel will conduct the arbitration, with each party selecting one member, and those two arbitrators choosing the third. Each party is responsible for half of the arbitration costs and their own legal fees.
The arbitrator must have at least ten years of experience in franchise matters and can order specific performance of the agreement. They must adhere to the agreement's substantive law, requirements, waivers, and limitations, and cannot alter the agreement's terms or excuse the performance of any material term. However, if a contractual limitations period is deemed unenforceable, the arbitrator will apply the relevant statute of limitations.
The arbitrator cannot determine or award class, mass, collective, or consolidated relief. All findings are limited to the issues in the written arbitration demand and response. The arbitrator must provide a reasoned award, and judgment can be entered in any court with jurisdiction. The award is binding, final, and non-appealable, except as allowed under the United States Arbitration Act or if the arbitrator fails to meet the specified requirements.