Does the Federal Arbitration Act apply to arbitrations involving Christian Brothers Automotive?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the Federal Arbitration Act (FAA) does apply to any arbitration undertaken. The franchise agreement states that disputes that cannot be settled through direct discussion will be resolved through binding arbitration administered by the American Arbitration Association.

Christian Brothers Automotive acknowledges that the franchise agreement and the dealings between the parties involve interstate commerce. Because of this involvement, the Federal Arbitration Act is applicable to any arbitration proceedings. This means that the arbitration process and any resulting awards are subject to federal law, which generally favors the enforcement of arbitration agreements.

This clause ensures that disputes are resolved through arbitration, a process generally quicker and less expensive than litigation. However, franchisees should be aware of the implications of agreeing to arbitration, including limitations on appealing decisions and the potential for reduced discovery compared to traditional court proceedings. Franchisees should seek legal counsel to fully understand the ramifications of this clause.