Who must approve any increases in the legal fee budget during arbitration with Cr3 American Exteriors?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Your attorney must include in your demand for arbitration an estimate for legal fees ("Budget") necessary to establish liability and damages. The Budget will include the maximum number of: a) witness, b) experts and c) documents. The Arbitrator will evaluate the Budget for proportionality to the Cure. The Budget must be approved by the Arbitrator before conducting any discovery or hearings. The Arbitrator must approve any increases in the Budget.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, during arbitration, any increases to the legal fee budget must be approved by the Arbitrator. Before conducting any discovery or hearings, the Arbitrator will evaluate the budget for proportionality to the cure and must approve the initial budget.
This means that if a Cr3 American Exteriors franchisee anticipates needing more funds for legal fees than initially estimated, they must seek approval from the Arbitrator. This requirement aims to ensure that legal costs remain reasonable and proportional to the matter being arbitrated.
This process is designed to control costs during arbitration. Franchisees should carefully estimate their legal fees upfront and be prepared to justify any requested increases to the Arbitrator. This could involve providing detailed explanations of why additional legal work is necessary and how it relates to the core issues of the arbitration.