How many arbitrators are used for Focalpoint Coaching arbitration if the claim is more than $300,000?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
s relationship with Franchisee;
- (3) the scope and validity of this Agreement or any other agreement between Franchisee and Franchisor or any provision of such agreements (including the validity and scope of the arbitration obligations under this Subsection 17.E, which the parties acknowledge is to be determined by an arbitrator and not a court); or
- (4) any System Standard;
must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association ("AAA"). The arbitration proceedings will be conducted by one arbitrator if the
amount of the claim is Three Hundred Thousand Dollars ($300,000) or less, or three (3) arbitrators if the amount of the claim is more than Three Hundred Thousand Dollars ($300,000). If there is one (1) arbitrator, the arbitrator shall be appointed by the AAA. If there are three (3) arbitrators, the claimant shall appoint one (1) arbitrator in its Notice of Arbitration and Statement of Claim; the respondent shall appoint one (1) arbitrator in its Statement of Defense, and the third arbitrator, who shall act as the Chairman, shall be appointed by the two (2) arbitrators appointed by the parties within thirty (30) days of the appointment of the second arbitrator. If any arbitrators are not appointed within these time periods, the AAA shall make the appointments. Except as this Subsection 17.E otherwise provides, the arbitration proceedings will be conducted according to the then current commercial arbitration rules of the AAA. All proceedings will be conducted at a suitable location chosen by the arbitrator(s) within ten (10) miles of the city where Franchisor's then current principal business address is located (currently, Henderson, Nevada).
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, disputes are resolved through binding arbitration administered by the American Arbitration Association (AAA). The number of arbitrators depends on the claim amount. If the claim exceeds $300,000, three arbitrators will be used.
In cases with three arbitrators, the claimant and respondent each appoint one arbitrator. The two appointed arbitrators then select a third arbitrator to act as the Chairman. If the parties' arbitrators fail to appoint a chairman within 30 days, the AAA will appoint the third arbitrator. The arbitration proceedings are governed by the AAA's commercial arbitration rules and will take place within ten miles of Focalpoint Coaching's principal business address in Henderson, Nevada.
This arbitration clause dictates how legal disputes with Focalpoint Coaching will be handled, potentially impacting the cost and location of resolving conflicts. Franchisees should be aware of these conditions, especially the allocation of arbitrator selection, as it influences the fairness and impartiality of the process. Understanding these terms is crucial before entering into a franchise agreement with Focalpoint Coaching.