Who will hear the Creative World School arbitration proceedings?
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.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, disputes are submitted to binding arbitration. The FDD does not specify who the arbitrator will be, but it does state that the arbitrator cannot consolidate claims with those of any third party.
Unless required by law, the franchisee and Creative World School cannot disclose the existence, content, or results of any arbitration without prior written consent from all parties involved. This includes the record of the arbitration hearing. Each party is responsible for their own legal costs, including counsel, experts, witnesses, and preparation, unless the arbitrator decides to award costs and attorney's fees to the prevailing party.
This means a franchisee may incur significant legal expenses during arbitration. The franchisee should consult with a legal professional to understand the implications of the arbitration clause and the potential costs involved. It would be prudent for a prospective franchisee to ask Creative World School for more details about the selection process and qualifications of the arbitrator to better understand the arbitration process.