What happens if direct discussions fail to settle a dispute with Christian Brothers Automotive?
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 that cannot be resolved through direct discussions will be settled through binding arbitration. This arbitration is administered by the American Arbitration Association (AAA) and follows its Commercial Arbitration Rules. The final decision made by the arbitrator(s) can be enforced in any court that has jurisdiction over the matter. The agreement emphasizes that the Federal Arbitration Act applies due to the interstate commerce nature of the franchise. Unless both parties agree otherwise in writing, the arbitration will be conducted before a panel of three arbitrators, and under no circumstances will an even number of arbitrators be used.
This arbitration clause covers a wide range of disputes, including those arising from the Franchise Agreement itself, any related agreements, or the relationships between the parties. It extends to claims of breach, termination, or invalidity of agreements, as well as claims for tortious interference, statutory claims, or other torts that occur before, during, or after the termination of the agreement. The clause also includes disputes involving employees, officers, directors, supervisors, or management members of either party.
Christian Brothers Automotive also ensures that any court with jurisdiction has the power to consolidate related arbitrable disputes, even if they do not arise directly under the Franchise Agreement. This consolidation can occur if the court deems it necessary for justice, efficiency, or other appropriate grounds, provided that all consolidated disputes are resolved through arbitration. This provision aims to streamline dispute resolution and prevent potentially conflicting outcomes in separate proceedings.