What experience should the neutral arbitrator have in Southern Steer arbitration proceedings?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
IF THE PARTIES CANNOT FULLY RESOLVE AND SETTLE A DISPUTE THROUGH DIRECT MEDIATION WITHIN 30 DAYS AFTER THE MEDIATION CONFERENCE CONCLUDES, ALL UNRESOLVED ISSUES INVOLVED IN THE DISPUTE (SUBJECT TO SECTION 22.4) WILL BE SUBMITTED TO BINDING ARBITRATION TO THE FORUM ON DEMAND OF EITHER PARTY.
BUT A NOTICE OR REQUEST FOR ARBITRATION WILL NOT OPERATE TO STAY, POSTPONE, OR RESCIND THE EFFECTIVENESS OF ANY DEMAND FOR PERFORMANCE OR NOTICE OF TERMINATION.
THE ARBITRATION PROCEEDING WILL BE BEFORE ONE NEUTRAL ARBITRATOR WITH CONTRACT EXPERIENCE APPOINTED BY THE FORUM IN ACCORDANCE WITH THE THEN-CURRENT OR SUCCESSOR CODE OF PROCEDURE.
EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, THE ARBITRATION SHALL BE CONDUCTED IN ACCORDANCE WITH THE THEN CURRENT OR SUCCESSOR CODE OF PROCEDURE.
THE ARBITRATOR WILL AGREE TO FOLLOW AND APPLY THE EXPRESS PROVISIONS OF THIS AGREEMENT IN DETERMINING THE ARBITRATION AWARD.
THE ARBITRATOR WILL NOT EXTEND OR MODIFY OR SUSPEND ANY OF THE TERMS OF THE AGREEMENT OR THE REASONABLE STANDARDS OF BUSINESS PERFORMANCE AND OPERATION ESTABLISHED BY FRANCHISOR.
THE ARBITRATOR SHALL BE BOUND TO APPLY THE APPLICABLE LAW AND SHALL NOT RULE INCONSISTENTLY WITH APPLICABLE LAW.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if mediation does not fully resolve a dispute within 30 days, the unresolved issues will be submitted to binding arbitration. The arbitration proceeding will involve one neutral arbitrator who possesses contract experience. This arbitrator is appointed by the Forum in accordance with the then-current or successor Code of Procedure.
The arbitrator must adhere to the express provisions outlined in the Southern Steer franchise agreement when determining the arbitration award. The arbitrator cannot extend, modify, or suspend any terms of the agreement or the reasonable standards of business performance and operation established by Southern Steer. The arbitrator is also legally obligated to apply the applicable law and cannot make rulings that are inconsistent with it.
This means that prospective Southern Steer franchisees can expect that any arbitration proceedings will be handled by an arbitrator with specific experience in contract law, ensuring a degree of expertise in relevant legal matters. However, franchisees should also recognize that the arbitrator's powers are limited by the franchise agreement itself, preventing them from altering the agreement's terms or Southern Steer's business standards.