Can settlement discussions be disclosed to arbitrators during a Crisp & Green arbitration proceeding?

According to Crisp & Green's 2024 Franchise Disclosure Document, settlement discussions related to any dispute will be protected by Federal Rule of Evidence 408 and other applicable rules that limit or preclude disclosure. Unless agreed to in writing, neither party is allowed to disclose any settlement discussions to the arbitrators for any reason. The arbitrators are also prohibited from considering any settlement discussions or offers made before the arbitration proceeding commenced.

This means that any offers or discussions about settling a dispute out of court cannot be brought up during the arbitration process. This rule aims to encourage open and honest settlement negotiations without fear that these discussions will be used against either party if arbitration becomes necessary. It ensures that the arbitrators' decisions are based solely on the merits of the case presented during the arbitration, not on prior settlement attempts.

For a prospective Crisp & Green franchisee, this provision offers a level of protection and confidentiality during settlement negotiations. It allows for more candid discussions, potentially leading to quicker and more amicable resolutions without prejudicing their position in arbitration if settlement fails. However, it also means that any perceived weaknesses or concessions made during settlement talks cannot be highlighted to the arbitrator to influence the outcome.