Can arbitration be conducted before an even number of arbitrators for Christian Brothers Automotive disputes?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Any such arbitration shall be conducted before three (3) arbitrators unless the parties agree in writing to a different number. No arbitration shall be conducted before an even number of arbitrators.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, arbitrations cannot be conducted before an even number of arbitrators. The standard process involves three arbitrators, but the parties can agree in writing to a different number. This ensures that a majority decision can always be reached, avoiding potential deadlocks in the arbitration process.
This requirement is designed to facilitate a clear resolution in case of disputes. By mandating an odd number of arbitrators, Christian Brothers Automotive aims to prevent situations where the arbitrators are equally divided, which could prolong the dispute or lead to an unresolved outcome. This approach is fairly standard in franchise agreements to ensure disputes can be resolved efficiently and fairly.
For a prospective Christian Brothers Automotive franchisee, this means that any dispute resolution through arbitration will involve either a single arbitrator or a panel of three or more, but never an even number. This provision is intended to provide a more decisive and conclusive arbitration process, potentially saving time and resources for both the franchisee and franchisor.