Under what arbitration rules will Creative World School arbitrations be conducted?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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)
The 2025 Creative World School Franchise Agreement does not specify which particular arbitration rules will govern the arbitration proceedings. However, it does mention the American Arbitration Association (AAA) procedures in the context of transcription costs for the arbitration hearing.
Specifically, the agreement states that the costs of transcriptions will be handled as per the AAA procedures. This suggests that while the agreement itself doesn't mandate AAA rules for the entire arbitration, those procedures might influence certain aspects, particularly concerning transcription expenses. The agreement also stipulates that all other fees and expenses of the arbitration will be borne equally by the parties involved, unless the AAA procedures state otherwise.
Furthermore, each party is responsible for their own legal counsel, experts, witnesses, and the preparation and presentation of their evidence. However, the arbitrator has the discretion to award costs and attorneys' fees to the prevailing party at the conclusion of the proceeding. It is important for a prospective franchisee to clarify with Creative World School which specific arbitration rules will be in effect to fully understand the arbitration process and associated costs.