If Chatime mediation fails, what method is used to resolve disputes?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Arbitration.
Except as otherwise provided in this Agreement, if the mediation is not successful, any controversy, claim, cause of action or dispute arising out of, or relating to this Agreement or related agreements, or the relationship of the parties, shall be resolved exclusively by binding arbitration.
(1) The right and duty of the parties to this Agreement to resolve any disputes by arbitration shall be governed exclusively by the Federal Arbitration Act, as amended, and arbitration shall be conducted pursuant to the then-prevailing Commercial Arbitration Rules of AAA.
(2) The arbitration shall be conducted in New York, New York, and parties and witnesses may appear by videoconference, unless the parties agree otherwise.
(3) Any dispute as to the arbitrability of any controversy, claim, cause of action or dispute shall also be determined by arbitration.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if mediation is unsuccessful in resolving a dispute, the matter will be settled through binding arbitration. This arbitration process applies to any controversy, claim, cause of action, or dispute arising from or related to the Franchise Agreement, related agreements, or the relationship between the parties.
The arbitration will be governed by the Federal Arbitration Act, as amended, and conducted according to the Commercial Arbitration Rules of the American Arbitration Association (AAA). This means that the arbitration process will follow a standard set of rules and procedures established by the AAA, ensuring a structured and legally sound approach to resolving the dispute.
The FDD states that the arbitration will be conducted in New York, New York, and parties and witnesses may appear by videoconference, unless the parties agree otherwise. Any disputes regarding whether a particular issue is subject to arbitration will also be determined through arbitration. This ensures that all aspects of the dispute, including its arbitrability, are resolved within the arbitration framework, providing a comprehensive and binding resolution process.