What organization handles the binding arbitration between Chicken Guy and the Developer?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 22.A., Chicken Guy and Developer 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 22.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. All matters
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, any disputes that cannot be resolved through mediation will be submitted to binding arbitration handled by the American Arbitration Association (AAA). This arbitration will follow the AAA's then-current rules for commercial arbitration. A single arbitrator will conduct the proceedings, and the location for arbitration will be in the city where Chicken Guy's principal offices are located when the demand for arbitration is filed. The arbitrator cannot choose a different location.
This means that if a Chicken Guy franchisee has a dispute with the company that cannot be resolved through initial consultation and mediation, the dispute will be settled through a binding arbitration process managed by the AAA. The decision made by the arbitrator will be legally binding for both Chicken Guy and the franchisee.
It is important to note that the arbitration will take place in the city where Chicken Guy's main offices are located, which may require the franchisee to travel. The franchisee should become familiar with the American Arbitration Association's rules for commercial arbitration to understand the procedures and standards that will govern the process.