Which organization administers the arbitration proceeding for Caring Transitions disputes?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the American Arbitration Association (AAA) administers the arbitration proceedings for disputes between Caring Transitions and its franchisees. The arbitration follows the Federal Arbitration Act and the AAA's prevailing Commercial Arbitration Rules. This means that any disputes arising out of or related to the franchise agreement will be handled by the AAA, ensuring a structured and regulated process.
The arbitration involves a panel of three arbitrators, and decisions are made on an individual basis, without consolidating claims from multiple franchisees. The arbitrators are not allowed to award special, indirect, consequential, or punitive damages, focusing instead on direct damages. The arbitration award must be in writing and include a reasoned opinion, providing transparency in the decision-making process.
Either party has the option to appeal the initial arbitration panel's decision within thirty days by requesting a new hearing before a second panel of three arbitrators, also constituted under AAA rules. The second tribunal conducts a hearing de novo, meaning they can adopt, modify, or substitute the initial award. The decision of the second tribunal is binding once confirmed by a court of competent jurisdiction. The arbitration proceedings will take place in Hamilton County, Ohio.
Each party is responsible for their own costs and expenses, including travel, copying, telephone charges, court costs, witness fees, and attorney and accounting fees. The administrative fees and arbitrators' fees are split equally between the parties. It is important to note that any demand for arbitration must be made before the statute of limitations applicable to the claim has run. However, if the amount in controversy exceeds $100,000, Caring Transitions has the right to require the matter be adjudicated in the Common Pleas Court of Hamilton County, Ohio, or the United States District Court for the Southern District of Ohio, in lieu of arbitration.