Under whose auspices will arbitration be conducted for Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
At our option, all claims or disputes between us, our shareholders, officers, directors, agents and employees and you, arising out of, or in any way relating to, this Agreement or any other agreement by and between you and us or our affiliates, or any of the parties' respective rights and obligations arising from such agreement, or the operation of the COOL BINZ Business which are not first resolved through the internal dispute resolution procedure set forth in Section 15.F.1 above, must be submitted to binding arbitration in Ann Arbor, Michigan under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Arbitration Rules then in effect, with an arbitrator with at least five (5) years of franchise law experience.
We may specifically enforce our rights to arbitration.
Each party shall bear its own cost of arbitration and you and we shall share costs of the arbitrator equally.
This agreement to arbitrate shall survive any termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, arbitration will be conducted under the auspices of the American Arbitration Association (AAA). This means that if Cool Binz and a franchisee have a dispute that cannot be resolved internally, and Cool Binz chooses to pursue arbitration, the process will be managed and guided by the AAA's established rules and procedures. The arbitration will take place in Ann Arbor, Michigan.
The AAA's involvement ensures a structured and impartial approach to resolving conflicts. Their Commercial Arbitration Rules will be in effect, and the arbitrator selected must have at least five years of experience in franchise law. This requirement aims to provide expertise and understanding of the specific legal context of franchising.
Both Cool Binz and the franchisee are responsible for their own arbitration costs, but they will share the arbitrator's costs equally. This cost-sharing arrangement is a common practice in franchising, intended to promote fairness and encourage both parties to participate responsibly in the arbitration process. It's also important to note that the agreement to arbitrate survives any termination or expiration of the franchise agreement, meaning that disputes arising even after the franchise relationship ends may still be subject to arbitration.