Where will arbitration occur for Craters & Freighters disputes not resolved by mediation?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event any dispute involving a Claim is not resolved through mediation within the sixty (60) day period referenced in Section 23.2 above, Franchisee must submit such Claim to arbitration in Jefferson County or Denver County, State of Colorado, in accordance with the Commercial Arbitration Rules of the American Arbitration Association and judgment upon the award may be entered in any court having jurisdiction thereof.
The arbitration will be held before, and decided by, a panel of three (3) arbitrators.
Franchisor will select one (1) arbitrator, Franchisee will select one (1) arbitrator, and those two (2) arbitrators will then select the third arbitrator.
If the arbitrators selected by Franchisor and Franchisee cannot agree on the third arbitrator, then all three (3) arbitrators will be selected in accordance with the rules of the American Arbitration Association, which means that the arbitrators selected by Franchisor and Franchisee will not serve as arbitrators for such Claim.
The parties hereto expressly consent to personal jurisdiction in the State of Colorado and agree that such court(s) will have exclusive jurisdiction over any determination of the "prevailing party" in accordance with such issues not subject to arbitration.
- 23.3.1 Authority of Arbitrators.
The arbitrators will not have any authority to add, delete, or modify in any manner, the terms and provisions of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, any dispute involving a claim that is not resolved through mediation within 60 days must be submitted to arbitration. The arbitration will take place in either Jefferson County or Denver County, Colorado. This means that a franchisee may be required to travel to Colorado to resolve disputes with Craters & Freighters.
The arbitration process will involve a panel of three arbitrators. Craters & Freighters will select one arbitrator, the franchisee will select another, and those two arbitrators will then select the third. If the two arbitrators chosen by each party cannot agree on the third arbitrator, then all three arbitrators will be selected according to the rules of the American Arbitration Association.
The document specifies that the arbitrators do not have the authority to alter or modify any terms of the franchise agreement. Furthermore, both parties consent to personal jurisdiction in the State of Colorado, and the courts in Colorado will have exclusive jurisdiction over any determination of the "prevailing party" in issues not subject to arbitration. This clause ensures that legal proceedings related to the franchise agreement will occur in Colorado, potentially increasing costs for franchisees located elsewhere.