On what basis will disputes and arbitrations be conducted and resolved involving Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (j) Except as otherwise required by law, neither party nor the arbitrator may disclose (to anyone not party to the arbitration) the existence, content, or results of any arbitration hereunder, including the record of the arbitration hearing, without the prior written consent of all the parties to the arbitration.
- (k) Except as may be provided for to the contrary in the AAA procedures with respect to the costs of transcriptions of the arbitration hearing, all fees and expenses of the arbitration shall be borne by the parties equally. Each party shall bear the expense of its own counsel, experts, witnesses, and preparation and presentation of proofs; provided, however, that the arbitrator shall have the authority, in its discretion, at the conclusion of the proceeding, to award costs and attorneys' fees to the prevailing party.
- (l) Any offer of settlement or compromise by either party, whether made before or during the proceeding, is not admissible in the arbitration.
- 21.06 Specific Performance. Nothing in this Agreement will prevent either you or we from obtaining temporary restraining orders and temporary or preliminary injunctive relief in a court of competent jurisdiction. However, you and we must contemporaneously submit the dispute for arbitration on the merits**.**
- 21.07 Third Parties. The arbitration provisions of this Agreement are intended to benefit and bind certain third party non-signatories, and all of yours and our principal owners and affiliates.
- 21.08 Survival. This provision continues in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement for any reason.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, disputes are subject to binding arbitration. The FDD outlines specific procedures for arbitration, including that neither party can consolidate their claim with a third party's claim, nor can the arbitrator order such consolidation. Unless required by law, the existence, content, or results of any arbitration cannot be disclosed to anyone not party to the arbitration without written consent from all parties involved.
Regarding the costs of arbitration, the FDD states that all fees and expenses of the arbitration will be shared equally between the parties, except for transcription costs, which may be handled differently according to AAA procedures. Each party is responsible for their own counsel, experts, witnesses, and preparation expenses. However, the arbitrator has the discretion to award costs and attorneys' fees to the prevailing party at the conclusion of the proceeding. Any settlement offers made before or during the proceeding are not admissible in the arbitration.
The Creative World School agreement does not prevent either party from seeking temporary restraining orders or preliminary injunctive relief from a court of competent jurisdiction, but the dispute must simultaneously be submitted for arbitration on the merits. These arbitration provisions are intended to benefit and bind certain third-party non-signatories, as well as the principal owners and affiliates of both parties. This arbitration provision remains in effect even after the termination or expiration of the Franchise Agreement.
Prospective franchisees should be aware of these arbitration terms, as they dictate how disputes with Creative World School will be resolved. Understanding these procedures, including the allocation of costs and the potential for attorney's fees to be awarded, is crucial for assessing the potential financial implications of any future disputes. Franchisees should also note the conditions under which they can seek injunctive relief and the continued applicability of these terms post-termination of the agreement.