Within how many days of commencement of arbitration must each party select an arbitrator for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitration shall be conducted by three arbitrators.
Each party shall select an arbitrator within fifteen (15) days of commencement of the arbitration who shall serve as party arbitrators.
The two designated party arbitrators shall select a neutral arbitrator within twenty (20) days of their selection.
If the two party arbitrators cannot agree on a third arbitrator within twenty (20) days of their appointment, the AAA shall select a third arbitrator in accordance with the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if arbitration is necessary, each party involved must select an arbitrator within fifteen days of the commencement of the arbitration process. These arbitrators are referred to as 'party arbitrators.'
After the selection of the party arbitrators, those two arbitrators then have twenty days to select a neutral arbitrator. If they cannot agree on a neutral arbitrator within that 20-day timeframe, the American Arbitration Association (AAA) will select the third arbitrator according to the terms of the agreement.
This arbitration process is designed to resolve disputes efficiently, but it's important for prospective franchisees to understand the specific timelines and procedures involved, including the selection of arbitrators and the potential involvement of the AAA. Franchisees should also be aware of the limited discovery allowed and the location of arbitration proceedings, which will be the city closest to Checkersrallys's principal place of business.