How many arbitrators are used in the arbitration process for Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 discussion will be settled by binding arbitration administered by the American Arbitration Association. Unless both parties agree to a different number, any arbitration will be conducted before a panel of three arbitrators. The agreement specifies that under no circumstances can an even number of arbitrators be used.
This means that a franchisee entering into a dispute with Christian Brothers Automotive will typically have their case decided by a panel of three neutral arbitrators, ensuring a balanced decision-making process. The arbitration process is governed by the rules of the American Arbitration Association, providing a structured framework for resolving conflicts.
The explicit mention of using three arbitrators (unless otherwise agreed) and prohibiting an even number of arbitrators aims to prevent deadlocks and ensure a clear resolution. This is a fairly standard practice in franchise agreements, as it provides a mechanism for resolving disputes outside of the court system, which can be more efficient and cost-effective. However, franchisees should be aware of the costs associated with arbitration, including filing fees, arbitrator fees, and legal representation, which can be substantial.