What are the qualifications for the arbitrator in a Fat Shack franchise dispute?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
ompany is located.
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- Arbitration. Any and all controversies, disputes or claims between FSI, its subsidiaries and affiliated companies or their shareholders, members, managers, officers, directors, agents, employees and attorneys (in their representative capacity); Company, its shareholders, members, managers, officers,
directors, agents and employees; and/or Associate arising out of or related to this Agreement or the validity hereof shall be submitted for binding arbitration; except for actions for injunctive relief pursuant to Section 7, which actions FSI and/or Company at their option may bring either in a court of competent jurisdiction or in arbitration. If FSI is a party to any controversy, dispute or claim, such arbitration proceedings shall be conducted in Denver, Colorado, will be submitted to the Judicial Arbiter Group, will be heard by one arbitrator in accordance with the then current rules of the American Arbitration Association ("AAA") applicable to commercial arbitration, and the arbitrator shall be a resident of the State of Colorado knowledgeable of Colorado law and fluent in English. The arbitration proceeding and all other hearings shall be conducted in English only, although Associate shall have the right, at Associate's option and sole expense, to have a translator present at the proceeding or other hearings. If FSI is not a party to such controversy, dispute or claim, such arbitration proceedings shall be conducted within the area in which Company's FAT SHACK Restaurant is based and will be heard by one arbitrator in accordance with the then current commercial arbitration rules of any arbitration group mutually acceptable to Company and Associate, and if Company and Associate cannot agree on an arbitration group within 30 days after demand for arbitration, then the AAA shall conduct such arbitration in accordance with its then current commercial arbitration rules. All jurisdictional issues will be decided by the arbitrator.
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- Attorneys' Fees.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the qualifications for the arbitrator depend on whether Fat Shack Inc. (FSI) is a party to the dispute. If FSI is a party, the arbitration will occur in Denver, Colorado, and be managed by the Judicial Arbiter Group. The arbitrator must be a resident of Colorado, knowledgeable about Colorado law, and fluent in English.
If Fat Shack Inc. is not involved in the dispute, the arbitration will be conducted within the area where the franchisee's Fat Shack restaurant is located. In this case, the arbitrator will be selected based on the commercial arbitration rules of an arbitration group agreed upon by both the franchisee and Fat Shack. If they cannot agree on an arbitration group within 30 days, the American Arbitration Association (AAA) will conduct the arbitration according to its commercial arbitration rules.
Regardless of who the parties are, the arbitrator is responsible for deciding all jurisdictional issues. This means the arbitrator will determine whether they have the authority to hear the case and make a binding decision. The arbitration proceedings and hearings will be conducted in English. However, the franchisee has the option to have a translator present at their own expense.