Where can I find the dispute resolution procedures for the Christian Brothers Automotive franchise agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee
voluntarily consents to this waiver.
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 Christian Brothers Automotive's 2025 Franchise Disclosure Document, the dispute resolution procedures are detailed in Section 24.01, titled "Dispute Resolution Agreement." This section stipulates that any dispute arising from the franchise agreement, or any related agreement, will be resolved through binding arbitration. The arbitration process is to be administered by the American Arbitration Association, following its Commercial Arbitration Rules. The document also specifies that any court with jurisdiction can consolidate arbitrable disputes to ensure justice and efficiency. This agreement emphasizes that the Federal Arbitration Act applies due to the interstate commerce nature of the franchise.
For a prospective Christian Brothers Automotive franchisee, this means that if a disagreement arises with the franchisor that cannot be resolved through direct discussion, the franchisee is obligated to participate in binding arbitration rather than pursuing a lawsuit in court. This process involves presenting the case to a neutral arbitrator or a panel of three arbitrators, unless otherwise agreed upon, who will make a final decision. The decision can be enforced in any court with jurisdiction.
This arbitration clause covers a broad range of disputes, including those related to breach of contract, tort claims, or statutory claims, whether they occur before, during, or after the termination of the franchise agreement. It also extends to disputes involving employees, officers, directors, or supervisors of either party. The agreement to consolidate disputes could potentially streamline the resolution process if there are multiple related issues, but it also means the franchisee could be involved in a larger, more complex arbitration proceeding.