How many arbitrators will conduct the Checkersrallys arbitration?

According to Checkersrallys's 2025 Franchise Disclosure Document, any arbitration will be conducted by a panel of three arbitrators. The process involves each party selecting one arbitrator within fifteen days of the arbitration's commencement; these two arbitrators are termed 'party arbitrators'. They then have twenty days to select a neutral arbitrator. If they fail to agree on a third arbitrator within this timeframe, the American Arbitration Association (AAA) will select the third arbitrator.

This three-arbitrator setup is a common practice in franchise arbitration, intended to balance the interests of both parties while ensuring impartiality through the selection of a neutral arbitrator. The arbitrators have the authority to award individual relief deemed proper under the evidence and applicable law, consistent with the agreement's limitations on damages and relief. The decision made by the arbitrators is considered conclusive and binding, and judgment upon the award can be entered in any court with competent jurisdiction.

For a prospective Checkersrallys franchisee, understanding this arbitration process is crucial. It outlines how disputes with Checkersrallys will be resolved, emphasizing the importance of selecting a capable arbitrator who will represent their interests effectively. The franchisee should also be aware of the timelines involved in the arbitrator selection process and the potential for the AAA to intervene if the party-appointed arbitrators cannot agree on a neutral third member. The costs associated with arbitration can be significant, and franchisees should factor this into their assessment of the franchise opportunity.