What arbitration rules govern disputes with Caring Transitions?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Except as otherwise provided in this Article 16, any and all disputes between the parties, whether or not arising out of or related to this agreement, shall be submitted to a panel of three (3) arbitrators as provided in this paragraph.
Each claim or controversy shall be arbitrated on an individual basis and shall not be consolidated in any arbitration action with the claim of any other franchisee.
The arbitration proceeding shall be administered by the American Arbitration Association (AAA) in accordance with the Federal Arbitration Act and the then prevailing Commercial Arbitration Rules of the AAA.
The arbitrators shall neither have nor exercise any power to act as amiable compositeur or ex aequo et bono; or to award special, indirect, consequential, or punitive damages.
The award shall be in writing and shall be accompanied by a reasoned opinion.
Within thirty (30) days after receipt of the award (which shall not be binding if either party requests a new hearing as provided herein), either party, by notifying the AAA and the other party, may appeal the decision of the initial arbitration panel by requesting a hearing de novo before a second panel of three arbitrators, constituted in accordance with the Commercial Arbitration Rules of the AAA.
None of the arbitrators who served on the original panel shall serve on the second tribunal.
The second tribunal shall conduct a hearing de novo and may adopt the initial award as its own, modify the initial award, or substitute its own award for the initial award.
The award of the second tribunal shall be binding upon both Franchisor and Franchisee upon the confirmation of the award by a court of competent jurisdiction.
Each party shall bear its own costs and expenses in connection with the arbitration, including travel expenses, out-of-pocket expenses such as copying and telephone charges, court costs, witness fees, and attorney and accounting fees.
The administrative fees and arbitrators' fees shall be allocated equally between the parties.
The arbitration proceedings shall take place in Hamilton County, Ohio.
Any demand for arbitration must be made before the statute of limitations applicable to such a claim has run.
Any dispute arising out of or in connection with this arbitration provision, including any question regarding its existence, validity, scope, or termination, shall be decided by arbitration.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, any disputes between the franchisee and Caring Transitions will be submitted to a panel of three arbitrators. The arbitration will be administered by the American Arbitration Association (AAA) and follow the Federal Arbitration Act and the AAA's Commercial Arbitration Rules. Each claim will be arbitrated individually and not consolidated with other franchisees' claims.
The arbitrators do not have the power to act as amiable compositeur or ex aequo et bono, or to award special, indirect, consequential, or punitive damages. The arbitration award must be in writing and include a reasoned opinion. Either party can appeal the initial decision within thirty days by requesting a new hearing before a second panel of three arbitrators, following the same AAA Commercial Arbitration Rules. None of the original arbitrators can serve on the second panel. The second panel's award is binding upon confirmation by a court.
Each party is responsible for their own costs and expenses, including travel, out-of-pocket expenses, court costs, witness fees, and attorney and accounting fees. The administrative and arbitrators' fees will be equally split between the parties. The arbitration proceedings will take place in Hamilton County, Ohio. Any demand for arbitration must be made before the statute of limitations for the claim has expired. Disputes regarding the arbitration provision itself will also be decided by arbitration.