For Fly Fitness, what organization is used for arbitration if disputes are not resolved through other means?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3.1 Except disputes not subject to alternative dispute resolution as set forth in Section 10.4, any dispute between Franchisor and Developer arising out of or relating to this Agreement, the Attachments hereto or any breach thereof, including any claim that this Agreement or any of its parts, is invalid, illegal or otherwise voidable or void, which has not been resolved in accordance with Sections 10.1 or 10.2, will be resolved by submission to the American Arbitration Association or its successor organization to be settled by a single arbitrator in accordance with the Commercial Arbitration Rules then in effect for such Association or successor organization.
- 10.3.2 All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained in this Article 10 will be governed by the Federal Arbitration Act (9 U.S.C. §1 et seq.) and the federal common law of arbitration. All hearings and other proceedings will take place in the State of Nebraska, or the offices of the American Arbitration Association, or, if Franchisor so elects, in the county where the principal place of business of Developer is then located.
- 10.3.3 This arbitration provision is self-executing and will remain in full force and effect after expiration or termination of this Agreement. Any arbitration will be conducted on an individual, and not a class-wide or multiple plaintiffs, basis. If either party fails to appear at any properly noticed arbitration proceeding, an award may be entered against the party by default or otherwise, notwithstanding the failure to appear. Judgment upon an arbitration award may be entered in any court having jurisdiction and will be binding, final and not subject to appeal. No punitive or exemplary damages will be awarded against Franchisor, Developer, or entities related to either of them, in an arbitration proceeding or otherwise, and are hereby waived.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, disputes between Fly Fitness and the developer that cannot be resolved through internal dispute resolution or mediation will be submitted to the American Arbitration Association (AAA) or its successor organization. The arbitration will be settled by a single arbitrator, following the Commercial Arbitration Rules in effect for the AAA or its successor.
The document specifies that the Federal Arbitration Act governs all issues relating to arbitrability or the enforcement of the arbitration agreement. All hearings and other proceedings will take place in the State of Nebraska, at the offices of the American Arbitration Association, or, if Fly Fitness chooses, in the county where the developer's principal place of business is located. The arbitration provision is self-executing and remains in effect even after the agreement expires or terminates.
The document emphasizes that any arbitration will be conducted on an individual basis, not as a class-wide or multiple plaintiffs case. Failure of either party to attend a properly noticed arbitration proceeding may result in an award against the absent party. The judgment upon the arbitration award is final, binding, and not subject to appeal, and no punitive or exemplary damages will be awarded against either Fly Fitness or the developer.