What version of the AAA Commercial Arbitration Rules are used for Cool Binz arbitration?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
al dispute resolution procedure before you may bring your dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
-
- Arbitration. 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.
- a. Notwithstanding the foregoing, we shall not be required to arbitrate, and may initiate litigation in court, in accordance with the procedure set forth in Section 15 F.3, any controversy, dispute, or claim as set forth in this Section 15.F.2 if such controversy, dispute, or claim concerns an allegation that you have violated (or threaten to violate, or pose an imminent risk of violating):
-
- Any federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information;
-
- Any claims pertaining to or arising out of any warranty issue;
-
- Any of the restrictive covenants contained in this Agreement;
-
-
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, any claims or disputes that are not resolved through the internal dispute resolution procedure must be submitted to binding arbitration in Ann Arbor, Michigan under the auspices of the American Arbitration Association ("AAA"). The specific version of the AAA's Commercial Arbitration Rules that will be used is the one "then in effect," meaning the version current at the time the arbitration is initiated. The arbitrator selected must have at least five years of franchise law experience.
Cool Binz may seek specific enforcement of its rights to arbitration. Each party is responsible for their own arbitration costs, while the costs of the arbitrator will be equally shared between Cool Binz and the franchisee. This agreement to arbitrate survives any termination or expiration of the Franchise Agreement.
However, Cool Binz is not required to arbitrate and may initiate litigation in court for disputes involving violations or potential violations of federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information. Litigation is also allowed for claims pertaining to warranty issues, restrictive covenants, fraud or misrepresentation by the franchisee, insolvency, or claims where the alleged damages are less than $50,000.