In a three-arbitrator Focalpoint Coaching arbitration, how is the chairman appointed?
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, disputes exceeding $300,000 will be settled through a three-arbitrator panel. The claimant (the party initiating the arbitration) and the respondent (the defending party) each appoint one arbitrator. The two arbitrators selected by the claimant and respondent then have 30 days to appoint a third arbitrator, who will serve as the Chairman of the arbitration panel. If the two party-appointed arbitrators fail to agree on a Chairman within this timeframe, the American Arbitration Association (AAA) will make the appointment.
This process ensures that both parties have a say in the selection of the arbitration panel, while also providing a mechanism for resolving deadlocks in the selection of the Chairman. The arbitration proceedings are governed by the commercial arbitration rules of the AAA, ensuring a structured and impartial process. The location of the arbitration will be within ten miles of Focalpoint Coaching's principal business address, which is currently Henderson, Nevada.
For a prospective Focalpoint Coaching franchisee, this means that in the event of a significant dispute with the franchisor, they will have some control over the selection of the arbitration panel. However, they should also be aware that the arbitration will likely take place in Nevada, which could involve travel expenses and other logistical challenges. Franchisees should familiarize themselves with the AAA's commercial arbitration rules to understand the process and their rights during arbitration.