Who names the third Arbitrator who acts as Chairperson for Chatime?

According to Chatime's 2025 Franchise Disclosure Document, in the event of arbitration, the two party-appointed arbitrators are responsible for naming the third arbitrator. This third arbitrator then serves as the Chairperson of the arbitration panel.

Specifically, after each party selects one arbitrator from the list provided by the AAA (American Arbitration Association), those two arbitrators collaborate to choose the third arbitrator. This process ensures that both parties have some influence over the selection of the arbitration panel, while also establishing a neutral Chairperson to oversee the proceedings.

This process is fairly standard in franchise agreements, as it aims to balance the interests of both the franchisor and the franchisee in resolving disputes. By having party-appointed arbitrators select the Chairperson, it reduces the risk of bias and promotes a fairer arbitration process. Prospective Chatime franchisees should understand this procedure, as it outlines how disputes with the franchisor will be handled.