Who decides disputes regarding the arbitrability of any controversy related to the Chatime agreement?

According to Chatime's 2025 Franchise Disclosure Document, any dispute regarding the arbitrability of any controversy, claim, cause of action, or dispute will be determined by arbitration. This means that instead of a court deciding whether a particular issue must be resolved through arbitration, the arbitration process itself will make that determination.

This is a common practice in franchise agreements, as it keeps the entire dispute resolution process within the arbitration framework. It ensures that questions about whether a dispute is subject to arbitration are also resolved through arbitration, rather than through court litigation. This can streamline the dispute resolution process and potentially reduce costs.

For a prospective Chatime franchisee, this means that if a disagreement arises about whether a certain issue should be arbitrated, the arbitrator, not a judge, will decide. Franchisees should be aware of this and understand the implications of agreeing to resolve disputes through arbitration, including disputes about the scope of the arbitration agreement itself. Franchisees should seek legal counsel to fully understand the arbitration process and its impact on their rights.