If arbitration is demanded for a dispute with Learningrx, where will the arbitration proceedings be conducted?
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, arbitration proceedings will be conducted in Denver, Colorado. The arbitrator will be chosen by the parties involved and should have experience in franchise law.
If the parties cannot agree on an arbitrator within ten business days of a written demand for arbitration, each party will select an arbitrator, and those two arbitrators will then select a single arbitrator to hear the case. Learningrx and the franchisee consent to using the services of Judicial Arbitration Group, Inc., or its successor, or the American Arbitration Association to manage the arbitration process. The arbitration will follow the American Arbitration Association's then-current Commercial Arbitration Rules.
This means that if a dispute arises that requires arbitration, a Learningrx franchisee must be prepared to travel to Denver, Colorado, for the proceedings. This could involve significant travel expenses and time away from their business. The franchisee should also factor in the cost of legal representation with expertise in franchise law, as the arbitrator is required to have experience in this field. Understanding these logistical and financial implications is crucial for any prospective Learningrx franchisee.