How many arbitrators will be on the arbitration panel for a Chatime franchise dispute?
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.
- (7) The fees and expenses of the proceeding may be awarded by the Arbitrator to the prevailing party.
If not so awarded, the parties shall bear their own fees, costs and expenses, and the charges of the arbitration service and arbitrator shall be split between the parties.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the arbitration panel will consist 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 three-arbitrator panel is a fairly standard approach in franchise arbitration, intended to provide a balance of perspectives and expertise. However, it's important to note that the fees and expenses of the arbitration proceeding may be awarded to the prevailing party. If not awarded, each party will bear their own fees, costs, and expenses, and the charges of the arbitration service and arbitrator will be split between the parties. This could potentially be a significant financial burden for a Chatime franchisee involved in a dispute.