Under what rules is the arbitration administered 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.
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.
(d) The parties agree that the federal and state courts located in the State of Texas and
City of Houston shall have exclusive jurisdiction and venue over an action brought
to enforce and/or challenge the rights and obligations created in or arising from this
agreement to arbitrate, and each of the parties hereto irrevocably submits to the
jurisdiction and venue of said courts. Notwithstanding the above, application may
be made by a party to any court of competent jurisdiction wherever situated for
confirmation and enforcement of any award and the entry of whatever orders are
necessary for such confirmation and enforcement.
(e) Process in any action arising out of or relating to this Agreement may be served on
any party to the Agreement anywhere in the world by delivery in person or by
registered or certified mail, return receipt requested.
(f) To the fullest extent permitted by applicable law, the parties to this Agreement
agree that neither party shall be entitled to any damages in the nature of punitive,
exemplary or statutory damages in excess of compensatory damages or any form
Franchise Agreement (Ver 04-14-2025)
of damages in excess of compensatory damages, and the parties hereby waive all
rights to any damages in the nature of punitive, exemplary or statutory damages.
Any arbitrator or arbitrators deciding any disputes hereunder will not have the
authority to award and are specifically divested of any power to award any damages
in the nature of punitive, exemplary or statutory damages or any other damages in
excess of compensatory damages or any form of damages in excess of
compensatory damages, and may not, in any event, make any ruling, finding or
award that does not conform to the terms and conditions of the Agreement.
(g) Neither the parties nor the arbitrator(s) may disclose to any person not involved in
the arbitration the existence, content, or results of any arbitration hereunder without
the prior written consent of all parties.
(h) The parties agree that all questions concerning the arbitrator(s)' jurisdiction shall
be decided by the arbitrator(s).
(i) A party or parties against whom any final award is entered by the arbitrator(s)
agrees to pay the prevailing party all reasonable costs, charges and expenses,
including but not limited to arbitration filing fees, arbitrator fees, reasonable
attorney and expert fees, incurred and to be incurred in connection with said
arbitration, any action to compel arbitration and/or compliance with the terms of
this section, and/or the confirmation and enforcement of the arbitration award. The
arbitrator(s) shall include such costs, charges and expenses as part of the final
award. This agreement to arbitrate is intended to be binding upon the signatories
hereto, their principals, successors, assigns, subsidiaries or affiliates.
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
(j) The arbitrator(s) shall determine the rights and obligations of the parties according
to applicable federal laws and to the substantive laws of the State of Texas
(excluding conflicts of laws principles).
(k) The arbitrator(s) is directed to consider any defense that all or part of the claim is
not timely by reason of laches or statute of limitations as a preliminary issue and to
render an award determining the merits of such claim before considering the
substantive merits of the arbitration claim, unless the arbitrator(s) determines that
the merits of such claim of laches or statute of limitations is so intertwined with the
substantive merits of the arbitration claim as to make impractical the determination
of the claim of laches or limitations as a preliminary matter.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, disputes that cannot be resolved through direct discussion will be settled by binding arbitration. The arbitration is administered by the American Arbitration Association (AAA) and follows its Commercial Arbitration Rules. Any resulting award from the arbitrator(s) can be entered in any court with jurisdiction. The Federal Arbitration Act applies to any arbitration, as the agreement involves interstate commerce. Unless otherwise agreed, a panel of three arbitrators will conduct the arbitration; under no circumstances can there be an even number of arbitrators. A court with jurisdiction can order the consolidation of arbitrable disputes under the agreement with related disputes not arising under the agreement.
The arbitrator(s) will determine the rights and obligations of the parties based on applicable federal laws and the substantive laws of Texas, excluding its conflicts of laws principles. The arbitrator(s) must consider defenses such as laches or statute of limitations as preliminary issues before addressing the substantive merits of the claim. The arbitrator(s) cannot award damages exceeding compensatory damages and must conform to the agreement's terms and conditions. The existence, content, or results of any arbitration cannot be disclosed to anyone not involved without prior written consent from all parties.
Regarding the arbitration process, the procedures will involve the submission of briefs, introduction of documents, oral testimony of witnesses, cross-examination, and oral arguments. The arbitrator(s) will regulate all matters relating to the arbitration's conduct, as long as it is not already provided for in the agreement or the AAA rules. If a party fails to appear or participate after notice, the proceedings will continue to conclusion and final award, which remains valid and enforceable. Discovery is limited and must be handled expeditiously, with parties required to produce relevant, non-privileged documents as ordered by the arbitrator(s). Strict rules of evidence do not apply, and the parties can offer the evidence they desire, subject to the arbitrator(s)' discretion.
The testimony of witnesses is subject to cross-examination, and direct testimony can be submitted via sworn affidavit if the affiant is available for cross-examination and the affidavit is provided at least ten days before the hearing. The arbitrator(s) can request briefs from the parties, introduce documents, and allow oral testimony, cross-examination, and oral arguments. The arbitrator(s) will also decide on questions concerning their jurisdiction. The losing party will pay all reasonable costs, including arbitration and attorney fees, incurred in connection with the arbitration. These terms are binding on the signatories, their principals, successors, assigns, subsidiaries, or affiliates.