Who administers the binding arbitration between Chicken Guy and the franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 31.A., Chicken Guy and Franchisee agree that all controversies, disputes, or claims between the parties and their respective affiliates, owners, shareholders, officers, directors, agents, and/or employees arising out of or related to: (1) this Agreement; (2) the relationship between the parties; (3) the scope and validity of this Agreement or any provision of this Agreement (including the validity and scope of the arbitration obligations under this Section 31.B., which the parties acknowledge is to be determined by an arbitrator and not a court); or (4) any aspect of the System or any System standard must be submitted for binding arbitration, on demand of either party, to the AAA and in accordance with its then-current rules for commercial arbitration.
The arbitration proceedings will be conducted by a single arbitrator.
The arbitration will take place in the city where Chicken Guy's principal offices are located at the time the demand for arbitration is filed.
The arbitrator will have no authority to select a different hearing locale other than as described in the prior sentence.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, binding arbitration between Chicken Guy and the franchisee is administered by the American Arbitration Association (AAA). The FDD specifies that any claim, controversy, or dispute arising out of the franchise agreement or the relationship between the parties must be submitted to the AAA for binding arbitration. The arbitration will follow the AAA's then-current rules for commercial arbitration.
This means that if a Chicken Guy franchisee has a dispute with the company that cannot be resolved through initial good-faith negotiations and non-binding mediation, either party can demand that the dispute be settled through binding arbitration managed by the AAA. The decision made by the arbitrator is conclusive and binding on both parties, and judgment upon the award may be entered in any court of competent jurisdiction.
It is important for prospective franchisees to understand that by agreeing to the franchise agreement, they are also agreeing to resolve certain disputes through arbitration rather than through the court system. Arbitration can sometimes be a quicker and more cost-effective method of dispute resolution, but it also means giving up the right to a trial by jury. The arbitration proceedings will be conducted by a single arbitrator and will take place in the city where Chicken Guy's principal offices are located at the time the demand for arbitration is filed.