What version of the American Arbitration Association rules apply to Cinch I.T. arbitrations?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.2 If the dispute is not resolved pursuant to Section 21.1 above, the Parties shall submit the dispute to mediation in accordance with the Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes) of the American Arbitration Association unless both Parties agree to waive mediation and proceed directly to arbitration as set forth in Section 21.3.
Each party will bear their own costs and fees of the mediation, however, the mediator's fee will be split equally between the Parties.
- 21.3 If the Parties have not resolved a claim, controversy or dispute by negotiation, mediation, or otherwise (which the Parties will make a diligent effort to do), the Parties agree that all controversies, claims and disputes between them arising out of or relating to this Agreement, the rights and obligations of the Parties hereto, or any other claims or causes of action relating to the performance of either party, and/or the development of the development rights by You shall be finally resolved by submitting this matter to binding arbitration under the auspices of, and using the commercial arbitration rules of, the American Arbitration Association as such rules are in effect as of the date the demand for arbitration is filed.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, any claim, controversy, or dispute between the parties that is not resolved through negotiation or mediation will be submitted to binding arbitration under the auspices of, and using the commercial arbitration rules of, the American Arbitration Association (AAA). The specific version of the AAA rules that will be used is the one in effect as of the date the demand for arbitration is filed.
This means that a prospective Cinch I.T. franchisee should be aware that the rules governing the arbitration process are not fixed but can change over time as the AAA updates its commercial arbitration rules. The franchisee will be bound by the rules in place at the time arbitration is initiated, not necessarily the rules in place when the franchise agreement is signed.
It is important for a prospective franchisee to stay informed about any updates to the AAA's Commercial Arbitration Rules and Mediation Procedures, as these changes could affect their rights and obligations in the event of a dispute with Cinch I.T. Franchisees should consult with legal counsel to understand the implications of these rules and how they may impact their specific circumstances.