What law governs the right and duty of Chatime parties to resolve disputes by arbitration?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 the 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, the Federal Arbitration Act, as amended, governs the right and duty of both parties to resolve disputes through arbitration. The arbitration process itself will be conducted following the then-prevailing Commercial Arbitration Rules of the American Arbitration Association (AAA).
This means that any disputes arising from the franchise agreement between Chatime and the franchisee will be subject to the rules and procedures outlined in the Federal Arbitration Act. Franchisees should familiarize themselves with this act and the AAA's Commercial Arbitration Rules to understand their rights and obligations during dispute resolution.
Furthermore, the FDD specifies that the arbitration will take place in New York, New York, although parties and witnesses can appear via videoconference unless both parties agree to a different location. Any disputes regarding whether a particular issue is subject to arbitration will also be decided through arbitration. This clause ensures that all aspects of dispute resolution, including the scope of arbitrable issues, are handled within the arbitration framework.