How many arbitrators are involved in the arbitration process for Craters & Freighters disputes?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Craters & Freighters's 2025 Franchise Disclosure Document, a panel of three arbitrators will preside over arbitration proceedings. The process involves Craters & Freighters selecting one arbitrator and the franchisee selecting another. These two arbitrators then jointly choose the third arbitrator to complete the panel.
If the arbitrators chosen by each party cannot agree on the third arbitrator, the American Arbitration Association's rules will govern the selection of all three arbitrators. In this case, the initial arbitrators selected by Craters & Freighters and the franchisee will not serve on the panel.
It is important to note that the arbitrators' authority is limited to interpreting the franchise agreement; they cannot add, delete, or modify its terms. All decisions must be made in writing within ten days after the hearing concludes.