In a three-arbitrator Focalpoint Coaching arbitration, who appoints the first arbitrator?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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, any disputes exceeding $300,000 will be subject to arbitration with three arbitrators. The claimant, which is the party initiating the arbitration, is responsible for appointing the first arbitrator in their Notice of Arbitration and Statement of Claim. This means that if a franchisee believes Focalpoint Coaching has violated the franchise agreement and initiates arbitration, the franchisee will select the first arbitrator.
The respondent, the party against whom the claim is made, then appoints the second arbitrator in their Statement of Defense. In most cases, Focalpoint Coaching would be the respondent. The two arbitrators chosen by each party then select the third arbitrator, who serves as the Chairman. If the two party-appointed arbitrators fail to agree on a Chairman within 30 days of the appointment of the second arbitrator, the American Arbitration Association (AAA) will appoint the third arbitrator.
This arbitration process is designed to provide a structured and impartial way to resolve disputes. However, it's important to note that if any arbitrator is not appointed within the specified timeframes, the AAA will handle the appointments. This ensures that the arbitration process continues without undue delay. All arbitration proceedings will be conducted according to the commercial arbitration rules of the AAA and will take place within ten miles of Focalpoint Coaching's principal business address in Henderson, Nevada.