In a three-arbitrator Focalpoint Coaching arbitration, who appoints the second arbitrator?
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, if a claim exceeds $300,000 and requires three arbitrators, the respondent in the arbitration case is responsible for appointing the second arbitrator in its Statement of Defense.
This means that if a Focalpoint Coaching franchisee has a dispute with the franchisor exceeding $300,000 and demands arbitration, Focalpoint Coaching, as the respondent, would need to appoint one arbitrator as part of their response. This requirement ensures that both parties have a direct say in selecting the panel that will resolve the dispute.
If either party fails to appoint their arbitrator within the specified time, the American Arbitration Association (AAA) will make the appointment. The two party-appointed arbitrators then have 30 days to select the third arbitrator, who will act as the Chairman. This process ensures a balanced and impartial arbitration panel.