Which organization administers the binding arbitration for 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, any disputes that cannot be resolved through direct discussions will be settled by binding arbitration. This arbitration is administered by the American Arbitration Association (AAA), following its Commercial Arbitration Rules. The judgment made by the arbitrator(s) can be entered in any court with the appropriate jurisdiction.
This means that if a Christian Brothers Automotive franchisee has a disagreement with the franchisor that cannot be resolved informally, they must go through arbitration rather than directly filing a lawsuit. The AAA's rules will govern the arbitration process, ensuring a structured and impartial approach to resolving the conflict. The decision reached through arbitration is legally binding, and a court can enforce it.
Notably, the FDD specifies that the Federal Arbitration Act applies, indicating that Christian Brothers Automotive's franchise agreements involve interstate commerce. The arbitration will be conducted before three arbitrators, unless both parties agree to a different number in writing, ensuring that no arbitration occurs with an even number of arbitrators. This clause aims to prevent deadlocks in the arbitration process.
Furthermore, the document allows a court with jurisdiction to consolidate related disputes, even if they arise under different agreements, to promote justice and efficiency. This consolidation clause can be beneficial in complex situations where multiple related issues need resolution. The arbitration process aims to provide a fair and efficient way to resolve disputes, but franchisees should be aware that they are waiving their right to a traditional court trial.