In the event of arbitration for Cr3 American Exteriors, how is the single arbitrator selected?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Matter cannot be resolved through Mediation, then the Matter will be resolved pursuant to the then-current Commercial Arbitration Rules of the AAA before a single arbitrator
selected by the AAA. The arbitration proceeding shall be held in the city or county where our corporate headquarters are located at the time of the hearing.
A. Proportionality of Fees
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.
B. Enforceable
In the event such Matter is resolved following submission to arbitration, then the decision and award determined by such arbitration will be final and binding upon both Parties enforceable by any court of competent jurisdiction.
C. Costs
Each Party will bear their own cost, including reasonable attorney's fees and expert witness fees related to the resolution of the Matter. Other than the initiation fees, the cost of the Mediator or Arbitrator will be shared equally among the Parties.
9.8. Limitations and Waivers
A. Limitation of Actions.
You will bring any Claims against us, if at all, within one (1) year of the occurrence of the facts giving rise to such Claims.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, if a matter cannot be resolved through mediation, it will be resolved through arbitration following the Commercial Arbitration Rules of the American Arbitration Association (AAA). A single arbitrator will be selected by the AAA. The arbitration proceeding will be held in the city or county where Cr3 American Exteriors' corporate headquarters are located at the time of the hearing.
Before discovery or hearings can occur, the franchisee's attorney must submit an estimated budget for legal fees, including the maximum number of witnesses, experts, and documents, which the arbitrator must approve. The arbitrator will evaluate the budget for proportionality to the cure and must approve any increases to the budget.
The decision and award determined by the arbitration will be final and binding on both parties and enforceable by any court. Each party will bear their own costs, including attorney's fees and expert witness fees. The costs of the mediator or arbitrator, other than initiation fees, will be shared equally between the parties. Franchisees must bring any claims against Cr3 American Exteriors within one year of the occurrence of the facts giving rise to such claims.