Under whose auspices must mediation occur for Craters & Freighters disputes?
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, if a dispute is not resolved through mediation, the franchisee must submit the claim to arbitration in Jefferson County or Denver County, Colorado. This arbitration will follow the Commercial Arbitration Rules of the American Arbitration Association (AAA). Judgment upon the arbitration award may be entered in any court with jurisdiction.
The arbitration process involves a panel of three arbitrators. Craters & Freighters will select one arbitrator, and the franchisee will select another. These two arbitrators will then choose the third arbitrator. If the two arbitrators cannot agree on the third, then all three arbitrators will be selected according to the rules of the American Arbitration Association. This ensures impartiality in the selection process.
The FDD specifies that the arbitrators do not have the authority to alter the terms of the Franchise Agreement. Both parties consent to personal jurisdiction in the State of Colorado, and the courts in Colorado will have exclusive jurisdiction over determining the "prevailing party" in any issues not subject to arbitration. Franchisees should note that this arbitration clause dictates the venue and process for resolving disputes, which may impact the cost and convenience of resolving disagreements with Craters & Freighters.