Who will hear the arbitration proceedings for Creative World School disputes?
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.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Creative World School specifies that disputes will be settled through arbitration. The FDD does not specify who the arbitrator will be. However, the FDD does state that the arbitration provisions of the agreement are intended to benefit and bind certain third-party non-signatories, as well as the principal owners and affiliates of both the franchisee and Creative World School. This means these parties are also subject to the arbitration agreement.
According to the FDD, neither party involved in the arbitration, nor the arbitrator, is allowed to disclose the existence, content, or results of the arbitration to anyone not directly involved in the proceedings. This includes the record of the arbitration hearing, and this restriction remains in place unless all parties involved provide prior written consent to disclose such information. This confidentiality clause is designed to protect sensitive business information and maintain privacy during and after the arbitration process.
Regarding the costs associated with arbitration, the FDD states that all fees and expenses related to the arbitration will be equally shared between the parties involved. The only exception to this is transcription costs, which may be handled differently according to the American Arbitration Association (AAA) procedures. Each party is responsible for covering their own expenses, such as attorney fees, expert witness fees, and the costs of preparing and presenting their case. However, the arbitrator has the discretion to award costs and attorney's fees to the party that prevails in the arbitration. Offers of settlement or compromise made before or during the arbitration are not admissible as evidence during the proceedings.
While the agreement mandates arbitration, it does not prevent either Creative World School or the franchisee from seeking temporary restraining orders or preliminary injunctive relief from a court of competent jurisdiction. However, if such action is taken, the dispute must simultaneously be submitted for arbitration on its merits. This ensures that while urgent, immediate relief can be sought in court, the underlying dispute will still be resolved through arbitration.