Where is the site of arbitration for disputes involving 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 Christian Brothers Automotive's 2025 Franchise Disclosure Document, disputes will be resolved through binding arbitration administered by the American Arbitration Association. The judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The arbitration will be conducted according to the American Arbitration Association's Commercial Arbitration Rules, except as modified within the agreement. The document specifies that the Federal Arbitration Act applies, acknowledging the interstate commerce nature of the agreement. Unless agreed otherwise in writing, the arbitration will be conducted before three arbitrators, with no circumstance allowing for an even number of arbitrators. The agreement also allows a court with jurisdiction to order the consolidation of related arbitrable disputes.
This means that if a Christian Brothers Automotive franchisee has a dispute with the franchisor that cannot be resolved through direct discussion, the dispute will be settled through arbitration rather than in court. The arbitration process will be managed by the American Arbitration Association (AAA), which is a neutral organization that provides dispute resolution services. The decision made by the arbitrator(s) can be enforced in any court that has the authority to do so.
The arbitration process will follow the AAA's established rules for commercial disputes, but these rules can be modified by the agreement between Christian Brothers Automotive and the franchisee. The agreement confirms that the franchise operates across state lines, meaning that federal law governs the arbitration process. Typically, three arbitrators will preside over the arbitration unless both parties agree to a different number. To ensure impartiality, an even number of arbitrators is prohibited. A court can combine related arbitration cases to promote fairness and efficiency.
For a prospective franchisee, this dispute resolution process offers a structured way to address conflicts. Arbitration is generally faster and less expensive than litigation, but the franchisee gives up the right to sue in court. The decision of the arbitrator(s) is binding, meaning there are limited grounds for appeal. The franchisee should become familiar with the American Arbitration Association's rules and consider the implications of agreeing to resolve disputes through arbitration.