How are disputes arising from the Christian Brothers Automotive agreement resolved?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ver.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
24. DISPUTE RESOLUTION AGREEMENT.
24.01 Dispute Resolution Agreement.
(a) If a dispute, controversy or claim arises between or among any or all of the parties, including without limitation any dispute, controversy or claim that arises out of or relates to this Agreement or any other agreement, instrument, or relationship between the parties, or the breach, termination or invalidity of the Agreement or any such other agreement or instrument, AND including but not limited to a claim based on or arising out of a claim for tortious interference or other tortious or statutory claims arising before, during or after termination of this Agreement and including any dispute that involves any or all of the parties and any employee, officer, director, supervisor or member of management of either party hereto (collectively the "Dispute"), and if the Dispute cannot be settled through direct discussions, the parties agree to resolve the Dispute by binding arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules (the "Rules"), and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. Any arbitration hereunder shall be pursuant to the applicable rules of the American Arbitration Association as set out above except to the extent modified in this Section. The parties acknowledge that this Agreement and/or the dealings of the parties involve interstate commerce and that the Federal Arbitration Act applies to any arbitration hereunder. 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, disputes between the franchisee and Christian Brothers Automotive are resolved through binding arbitration. If direct discussions fail to settle a dispute, the parties must submit to binding arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. Any court with jurisdiction can order the consolidation of arbitrable disputes under the agreement with related disputes not arising under the agreement, if deemed necessary for justice or efficiency. This agreement to arbitrate is governed by the Federal Arbitration Act, highlighting its interstate commerce implications.
The arbitration process involves three arbitrators, unless both parties agree to a different number in writing, ensuring that an even number of arbitrators is never used. The judgment upon the arbitrator's award can be entered in any court with jurisdiction. This arbitration clause covers a broad range of disputes, including those related to the Franchise Agreement, any other agreements between the parties, or claims of tortious interference or statutory claims arising before, during, or after the termination of the agreement. It also includes disputes involving employees, officers, directors, supervisors, or members of management of either party.
This mandatory arbitration clause means that franchisees waive their right to sue Christian Brothers Automotive in court and instead must present their case to an arbitrator. While arbitration can sometimes be faster and less expensive than litigation, the arbitrator's decision is generally final and binding, with limited grounds for appeal. Prospective franchisees should understand the implications of this dispute resolution process and consider seeking legal counsel to fully understand their rights and obligations under the Franchise Agreement.