How are the arbitrators selected for a Craters & Freighters arbitration?
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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, any claim that is not resolved through mediation within sixty days must be submitted to arbitration. The arbitration will occur in either Jefferson County or Denver County, Colorado, following the Commercial Arbitration Rules of the American Arbitration Association. The arbitration will be decided by a panel of three arbitrators.
Regarding the selection of the arbitrators, Craters & Freighters will select one arbitrator, and the franchisee will select another. The two arbitrators chosen by each party will then jointly select the third arbitrator to complete the panel.
However, if the two arbitrators initially selected by Craters & Freighters and the franchisee cannot agree on the third arbitrator, then all three arbitrators will be selected according to the rules of the American Arbitration Association. In this case, the arbitrators initially selected by Craters & Freighters and the franchisee will not serve on the panel. This ensures impartiality in the arbitration process when the initial appointees are unable to reach a consensus.