In Learningrx arbitration, how is the arbitrator selected if the parties cannot agree?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Such arbitration proceedings shall be conducted in Denver, Colorado, and by one arbitrator chosen by the parties and experienced in franchise law. If the parties are unable to agree to the selection of an arbitrator within ten business days of the date of any written demand for arbitration made hereunder. The parties shall each select one arbitrator and the two selected arbitrators shall select a single arbitrator to hear the matter. The parties consent to the use of the services of Judicial Arbitration Group, Inc. or its successor or the American Arbitration Association to administer the arbitration. The arbitration shall be conducted in accordance with the then -current Commercial Arbitration Rules of the American Arbitration Association.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if the parties involved in arbitration cannot agree on an arbitrator within ten business days of a written demand for arbitration, a specific procedure is followed. Both parties will each select one arbitrator, and then those two arbitrators will jointly select a single arbitrator to preside over the matter.
This process ensures that both Learningrx and the franchisee have a say in the selection of the arbitrator, promoting a sense of fairness. By having each side choose an arbitrator, and then those two arbitrators selecting the final one, it reduces the risk of bias towards one party. This is a common practice in franchise agreements to ensure impartiality in dispute resolution.
The agreement also specifies that the parties consent to using the services of Judicial Arbitration Group, Inc. or its successor, or the American Arbitration Association to administer the arbitration. The arbitration itself will be conducted following the Commercial Arbitration Rules of the American Arbitration Association, providing a structured and recognized framework for the proceedings.