How does AAA select the Arbitrator candidates for Chatime?

According to Chatime's 2025 Franchise Disclosure Document, the American Arbitration Association (AAA) plays a role in selecting arbitrator candidates. Specifically, the AAA sends each party involved in a dispute a separate list containing at least ten arbitrator candidates. These candidates are selected from the AAA Franchise Panel. Along with the list of names, the AAA also provides a brief description of each candidate's background and experience.

Following receipt of the list of candidates, each party has a seven-day window to select one arbitrator from their respective list. The two arbitrators selected by each party will then choose a third arbitrator, who will serve as the Chairperson of the arbitration panel. This process ensures that both parties have a say in the selection of the arbitration panel members.

This process is intended to provide a balanced and impartial method for selecting arbitrators. By having the AAA provide a list of candidates and allowing each party to select an arbitrator, it reduces the risk of bias in the arbitration process. The requirement for the two party-appointed arbitrators to then select a third arbitrator as the Chairperson further ensures impartiality and fairness in the arbitration proceedings. Prospective Chatime franchisees should understand this process, as it outlines how disputes with Chatime may be resolved.