How many arbitrators will be involved in the arbitration proceeding for Southern Steer disputes?
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.
FRANCHISOR AND FRANCHISEE AGREE THAT, IN ANY ARBITRATION PROCEEDING, EACH PARTY MUST SUBMIT OR FILE ANY CLAIM WHICH WOULD CONSTITUTE A COMPULSORY COUNTERCLAIM (AS DEFINED BY THE FEDERAL RULES OF CIVIL PROCEDURE) WITHIN THE SAME PROCEEDING AS THE CLAIM TO WHICH IT RELATES.
ANY CLAIM WHICH IS NOT SUBMITTED OR FILED AS REQUIRED IS FOREVER BARRED.
EACH PARTY WILL, UPON THE WRITTEN REQUEST OF THE OTHER PARTY, PROMPTLY PROVIDE THE OTHER WITH COPIES OF DOCUMENTS RELEVANT TO THE ISSUES RAISED BY ANY CLAIM OR COUNTERCLAIM ON WHICH THE PRODUCING PARTY MAY RELY IN SUPPORT OF OR IN OPPOSITION TO ANY CLAIM OR DEFENSE.
ANY DISPUTE REGARDING
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, any unresolved issues in a dispute that cannot be settled through mediation will be submitted to binding arbitration. The arbitration proceeding will involve one neutral arbitrator with contract experience. This arbitrator will be appointed by the Forum in accordance with the then-current or successor Code of Procedure.
This means that if a Southern Steer franchisee has a dispute with the franchisor that cannot be resolved through mediation, a single, neutral arbitrator will make a legally binding decision. The arbitrator must have experience in contract law, ensuring they possess the necessary expertise to understand the franchise agreement and related legal issues. The arbitrator is expected to follow the express provisions of the franchise agreement and applicable law, and cannot extend, modify, or suspend any terms of the agreement or the franchisor's business standards.
For a prospective Southern Steer franchisee, this single-arbitrator approach could be beneficial in terms of cost and efficiency compared to a panel of arbitrators. However, it also means that the outcome of the arbitration rests solely on the judgment of one individual. The franchisee should consider the implications of this arrangement, especially regarding the arbitrator's expertise and potential biases. The franchisee also needs to be aware of the rules and procedures of the Forum that will govern the arbitration process.
Southern Steer requires that any claims that would constitute a compulsory counterclaim must be submitted or filed within the same proceeding as the claim to which it relates, or that claim will be forever barred. Discovery is to be completed within 60 days following the appointment of the arbitrator. The arbitrator also has the discretion to order examination by deposition of witnesses, but depositions are limited to a maximum of five per party and six hours duration each.