Are standard court discovery procedures applicable in Christian Brothers Automotive arbitrations?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
nevertheless be conducted to conclusion and final award. Any
award rendered under such circumstances shall be as valid and enforceable as if all
parties had appeared and participated fully at all stages.
(p) The parties agree that discovery shall be limited and shall be handled expeditiously.
Discovery procedures available in litigation before the courts shall not apply in an
arbitration conducted pursuant to this Agreement. However, each party shall
produce relevant and non-privileged documents or copies thereof requested by the
other parties within the time limits set and to the extent required by order of the
arbitrator(s). All disputes regarding discovery shall be resolved by the arbitrator.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
(q) It is the intent of the parties that the testimony of witnesses be subject to cross-
examination. It is agreed that the direct testimony of a witness may be submitted
by sworn affidavit, provided that such affiant be subject to cross-examination, and
that such affidavit be produced to all parties not less than ten (10) days before the
hearing or other proceeding in which the affidavit is submitted to the arbitrator(s).
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, standard court discovery procedures are not applicable in arbitrations. Instead, discovery is limited and handled expeditiously. However, each party must produce relevant and non-privileged documents requested by the other parties within the time limits and to the extent required by the arbitrator(s)' order. The arbitrator resolves all disputes regarding discovery.
This means that prospective Christian Brothers Automotive franchisees will not have access to the same level of discovery as in a court case, which could limit their ability to gather information and evidence to support their claims. The franchisee must rely on the arbitrator to order the production of necessary documents. This could be a disadvantage for franchisees who may have less bargaining power or resources than Christian Brothers Automotive.
However, the FDD also states that the procedure to be followed in any arbitration will be as prescribed in the agreement and in directives issued by the arbitrator(s) after consulting with the parties. Unless otherwise agreed, the procedures will provide for the submission of briefs, the introduction of documents, oral testimony of witnesses, cross-examination of witnesses, and oral arguments. This ensures that franchisees have some opportunity to present their case and challenge the evidence presented by Christian Brothers Automotive, even with limited discovery.