What arbitration association is used for Clean Your Dirty Face franchise disputes?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
ents (including the validity and scope of the arbitration provision under this Section 17.E, which we and you acknowledge is to be determined by an arbitrator, not a court); or
- (4) any System Standard;
must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association. The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association. All proceedings will be conducted at a suitable location chosen by the arbitrator in or within 50 miles of our (or our successor's or assign's, as applicable) then-current principal place of business (currently, High Point, North Carolina). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that the arbitrator may not declare any of the trademarks owned by us or our affiliates generic or invalid or, except as expressly provided in this Section 17, award any punitive, exemplary, or multiple damages against any party to the arbitration proceeding (we and you hereby waiving to the fullest extent permitted by law any such right to or claim for any punitive, exemplary, or multiple damages against any party to the arbitration proceedings).
We and you agree to be bound by the provisions of any applicable contractual or statutory limitations provision, whichever expires earlier. We and you further agree that, in any arbitration proceeding, each party must submit or file any controversy, dispute, or claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding. Any controversy, dispute, or claim which is not submitted or filed as required will be forever barred. The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us.
We and you agree that arbitration will be conducted on an individual basis and that an arbitration proceeding between us and our affiliates, or our and their respective shareholders, officers, directors, agents, and employees, on the one hand, and you (or your owners, guarantors, affiliates, and employees) may not be: (i) conducted on a class-wide basis, (ii) commenced, conducted or consolidated with any other arbitration proceeding, (iii) or brought on your behalf by any association or agency. Notwithstanding the foregoing, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute, controversy or claim that otherwise would be subject to arbitration under this Section, then all parties agree that this arbitration clause shall not apply to that dispute, controversy or claim and that such
dispute, controversy or claim shall be resolved in a judicial proceeding in accordance with the dispute resolution provisions of this Agreement.
Despite our and your agreement to arbitrate, we and you each have the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction; provided, however, that we and you must contemporaneously submit our dispute, controversy or claim for arbitration on the merits as provided in this Section.
You and we agree that, in any arbitration arising as described in this Section, requests for documents shall be limited to documents that are directly relevant to significant issues in the case or to the case's outcome; shall be restricted in terms of time frame, subject matter and persons or entities to which the requests pertain; and shall not include broad phraseology such as "all documents directly or indirectly related to." You and we further agree that no interrogatories or requests to admit shall be propounded.
The provisions of this Section are intended to benefit and bind certain third-party non-signatories and will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
Any provisions of this Agreement below that pertain to judicial proceedings shall be subject to the agreement to arbitrate contained in this Section.
17.F. GOVERNING LAW.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, any disputes requiring arbitration must be submitted to the American Arbitration Association (AAA). The arbitration will be conducted by a single arbitrator, following the AAA's Commercial Arbitration Rules, except where the franchise agreement specifies otherwise. The arbitration location will be chosen by the arbitrator and must be within 50 miles of Clean Your Dirty Face's principal place of business, which is currently High Point, North Carolina. The Federal Arbitration Act governs all arbitration matters. The arbitrator's award can be entered in any court with jurisdiction.
The arbitrator has broad authority to award relief, including monetary damages with interest, specific performance, injunctive relief, and attorneys' fees and costs. However, the arbitrator cannot declare Clean Your Dirty Face's trademarks generic or invalid, nor can they award punitive, exemplary, or multiple damages, as these rights are waived by both parties to the fullest extent permitted by law. Both Clean Your Dirty Face and the franchisee must adhere to any applicable contractual or statutory limitations.
In any arbitration, both parties must submit any claims that would be considered compulsory counterclaims under Rule 13 of the Federal Rules of Civil Procedure, or those claims will be permanently barred. The arbitrator is prohibited from considering any settlement discussions or offers made by either party. Despite the agreement to arbitrate, both Clean Your Dirty Face and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief from a court, provided that the dispute is simultaneously submitted for arbitration on the merits. Discovery is limited to directly relevant documents, restricted by time frame, subject matter, and the parties involved, and excludes broad requests or interrogatories. These arbitration provisions benefit and bind third-party non-signatories and remain effective even after the franchise agreement expires or terminates.