Is disagreement regarding the interpretation of the Floors To Go agreement subject to arbitration?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Negotiating Teams fail to resolve the Dispute within the 30-day negotiation period set forth above, any party may notify the other party of such failure by delivery of a written notice (a "Final Dispute Notice").
Upon the giving or receipt of a Final Dispute Notice, any unresolved Dispute, including without limitation, any disagreement regarding the interpretation or the operation of this Agreement shall be determined by final and binding arbitration under the rules of the American Arbitration Association ("AAA").
The arbitration shall be conducted in the county in Florida in which we maintain our principal office, or such other mutually agreed upon location before a panel of three arbitrators.
One arbitrator shall be selected by each of the parties and the third arbitrator shall be selected by the two arbitrators designated by the parties.
The arbitrators shall have the authority to award to the prevailing party all of its reasonable costs and expenses identified in Section 9.5 above, including, without limitation, paralegal and attorneys' fees.
The arbitration award shall be final and binding on the parties, and judgment on the award may be entered in any court having jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, disagreements about the interpretation or operation of the franchise agreement are subject to arbitration. If initial negotiations between the involved parties fail to resolve the dispute within a 30-day period, either party can issue a "Final Dispute Notice," which then triggers the arbitration process.
The arbitration process dictates that any unresolved dispute, including disagreements about the interpretation or operation of the agreement, will be settled through final and binding arbitration under the rules established by the American Arbitration Association (AAA). This means that an independent, impartial arbitrator or panel of arbitrators will review the evidence and arguments presented by both Floors To Go and the franchisee and make a decision.
The arbitration will occur in the county in Florida where Floors To Go has its primary office, unless both parties agree to another location. A panel of three arbitrators will preside: one chosen by each party, and a third selected by the two party-appointed arbitrators. The arbitrators can award the prevailing party their reasonable costs and expenses, including paralegal and attorneys' fees. The arbitration outcome is legally binding, and the judgment can be enforced in any court with jurisdiction.