In the Coffee News franchise agreement, who determines the arbitrator?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for obtaining injunctive relief by either party against actual or threatened conduct that would cause irreparable harm to that party, all controversies, disputes or claims arising under this Agreement between Franchisor and Franchisee shall be submitted for arbitration to the Office of the American Arbitration Association nearest to Franchisor on demand of either Franchisor or Franchisee.
Such arbitration proceedings shall be conducted in Bangor, Maine.
Except as otherwise provided in this Agreement, such claims shall be heard by one arbitrator in accordance with the then Current Commercial Arbitration Rules of the American Arbitration The administrative cost of the arbitration, including the cost of the Association. arbitrator, shall be borne equally by the parties.
Each party shall be responsible for the payment of its own attorneys' fees and expenses.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, if there are disputes, controversies, or claims, the arbitrator will be from the American Arbitration Association. Either Coffee News or the franchisee can demand arbitration, which will occur at the office of the American Arbitration Association nearest to Coffee News.
The arbitration will take place in Bangor, Maine, and be heard by a single arbitrator. The arbitrator will follow the American Arbitration Association's current Commercial Arbitration Rules unless the agreement specifies otherwise.
The administrative costs of the arbitration, including the arbitrator's fees, will be split equally between Coffee News and the franchisee. Each party is responsible for covering their own attorney's fees and expenses during the arbitration process. Injunctive relief is an exception, where either party can seek it against actions that could cause irreparable harm.