Who selects the arbitrators for a Craters & Freighters arbitration?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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, in the event that mediation does not resolve a dispute, the franchisee must submit the claim to arbitration in Jefferson County or Denver County, Colorado. The arbitration will be decided by a panel of three arbitrators.
Craters & Freighters will select one arbitrator, and the franchisee will select another. The two arbitrators selected by Craters & Freighters and the franchisee will then select the third arbitrator.
However, if the arbitrators selected by Craters & Freighters and the franchisee cannot agree on the third arbitrator, then all three arbitrators will be selected in accordance with the rules of the American Arbitration Association. This means that the arbitrators initially selected by Craters & Freighters and the franchisee will not serve as arbitrators for that particular claim.