Is an even number of arbitrators allowed for Christian Brothers Automotive dispute resolution?
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, disputes that cannot be resolved through direct discussion will be settled by binding arbitration administered by the American Arbitration Association. The standard number of arbitrators is three, but the parties can agree to a different number in writing. However, the agreement explicitly states that under no circumstances can an even number of arbitrators be used.
This condition ensures that a tied decision cannot occur during arbitration. With an odd number of arbitrators, there will always be a majority opinion, leading to a conclusive outcome. This is a standard practice in arbitration to avoid deadlock and ensure a resolution is reached.
For a prospective Christian Brothers Automotive franchisee, this means that any dispute resolution process will involve either a single arbitrator or a panel of three or more arbitrators, as long as the total number is odd. This provision aims to provide a clear and decisive resolution mechanism for any conflicts that may arise during the franchise agreement.