In the event of a dispute with Caring Transitions, how many arbitrators will be on the panel?
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 Caring Transitions and a franchisee will be submitted to a panel of three arbitrators. The arbitration proceedings will be managed by the American Arbitration Association (AAA) following the Federal Arbitration Act and AAA's Commercial Arbitration Rules. The arbitrators are not allowed to act as amiable compositeur or ex aequo et bono, or to award special, indirect, consequential, or punitive damages. The arbitration must be conducted on an individual basis and cannot be combined with claims from other franchisees. The decision made by the arbitrators must be in writing and include a well-reasoned opinion.
Within 30 days of receiving the award, either party can request a new hearing before a second panel of three arbitrators. This request must be made by notifying the AAA and the other party. None of the arbitrators from the original panel can serve on the second panel. The second panel will conduct a new hearing and can either adopt, modify, or substitute the initial award with their own. The decision of the second tribunal is binding once confirmed by a court with jurisdiction. Each party is responsible for their own costs, including travel, out-of-pocket expenses, witness fees, and attorney and accounting fees. The administrative and arbitrators' fees will be split equally between the parties. The arbitration proceedings will be held in Hamilton County, Ohio, and any demand for arbitration must be made before the statute of limitations expires.
However, Caring Transitions has the right to require that the matter be adjudicated in either the Common Pleas Court of Hamilton County, Ohio or the United States District Court for the Southern District of Ohio, in lieu of arbitration, if the amount in controversy in any dispute between Franchisor and Franchisee exceeds $100,000 in the aggregate. If an arbitration demand has already been filed in connection with such a dispute, Franchisor shall have the right to remove the matter to such court.