How many arbitrators are on the arbitration panel for Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) The arbitration panel shall consist of three arbitrators.
AAA shall send each of the Parties a separate list of at least at least ten (10) Arbitrator candidates from the AAA Franchise Panel.
AAA shall also provide each Party with a brief description of the background and experience of each Arbitrator candidate.
- (6) Within seven (7) calendar days of service upon the Parties of their list of names, each Party may select one Arbitrator from their respective list.
The two party-appointed Arbitrators shall name a third Arbitrator who shall act as the Chairperson.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the arbitration panel consists of three arbitrators. The American Arbitration Association (AAA) will provide both parties with a list of at least ten arbitrator candidates from the AAA Franchise Panel, including a brief description of their backgrounds and experience.
Within seven calendar days of receiving the list, each party can select one arbitrator. The two party-appointed arbitrators will then choose a third arbitrator to act as the Chairperson. This structure ensures that both Chatime and the franchisee have a direct influence on the selection of the arbitration panel.
This process is designed to provide a balanced and impartial panel for resolving disputes. Having three arbitrators, with each party selecting one and those two selecting the chair, is a common practice intended to mitigate bias and ensure a fair hearing. Prospective franchisees should understand this process, as it outlines how disputes with Chatime would be handled through arbitration.