Can the location of the arbitration for Christian Brothers Automotive be changed?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
(b) The parties expressly agree that any court with jurisdiction may order the
consolidation of any arbitrable dispute, controversy or claim under this Agreement
with any related arbitrable dispute, controversy or claim not arising under this
Agreement, as the court may deem necessary in the interests of justice or efficiency
or on such other grounds as the court may deem appropriate, provided that the
consolidated disputes, controversies and claims are to be resolved in arbitration.
(c) The site of the arbitration shall be in Houston, Texas, and shall take place in the
offices of the American Arbitration Association or such other place as the parties
may agree.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, any disputes that arise between the franchisee and Christian Brothers Automotive will be settled through binding arbitration. The arbitration will be administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. The document does not specify a location for the arbitration, but it does state that any judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction.
The Christian Brothers Automotive FDD states that the arbitration will be conducted before three arbitrators unless both parties agree in writing to a different number. However, under no circumstances can the arbitration be conducted before an even number of arbitrators. The agreement also states that any court with jurisdiction may order the consolidation of any arbitrable dispute with any related arbitrable dispute not arising under the agreement.
The arbitrator's jurisdiction will be determined by the arbitrator(s), and they must adhere to applicable federal laws and the substantive laws of the State of Texas, excluding conflicts of laws principles. The arbitrator(s) must also consider any defense regarding the timeliness of a claim based on laches or statute of limitations as a preliminary issue.
Ultimately, the Christian Brothers Automotive franchise agreement does not provide an option to change the location of the arbitration. The agreement specifies that the arbitration process will be managed by the American Arbitration Association, but it does not mention a specific location. A prospective franchisee should seek clarification from Christian Brothers Automotive regarding the typical location of arbitration proceedings and whether there is any flexibility in this matter.