Is disagreement regarding the operation of the Floors To Go agreement subject to arbitration?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
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, any disagreement regarding the interpretation or operation of the franchise agreement is subject to arbitration. Before initiating arbitration, the parties must first attempt to resolve the dispute through good-faith negotiations for at least 30 days. If negotiations fail, either party can issue a Final Dispute Notice, after which unresolved disputes will be settled through binding arbitration under the rules of the American Arbitration Association (AAA).
The arbitration will occur in the county in Florida where Floors To Go maintains its principal office, unless both parties agree to another location. A panel of three arbitrators will preside over the arbitration. Each party will select one arbitrator, and the two chosen arbitrators will then select the third. The arbitrators have the authority to award the prevailing party their reasonable costs and expenses, including paralegal and attorneys' fees, as detailed in Section 9.5 of the agreement.
The arbitration award is final and binding, and can be enforced in any court with jurisdiction. This process ensures that disputes are resolved efficiently and with finality, providing a clear framework for addressing disagreements that may arise during the franchise term. However, it's important to note that before arbitration, both parties are expected to disclose all relevant factual evidence and legal bases for their claims or defenses during the 30-day negotiation period.