Under The Standardx agreement, how many arbitrators are used in the arbitration proceedings?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Arbitration. All controversies, disputes, or claims between Hyatt (and/or its Related Parties) and Franchisee (and/or its Related Parties) arising out of or related to: (a) this Agreement or any other agreement between Franchisee and Hyatt or any of its Affiliates; (b) Hyatt's (or any of its Affiliates') relationship with Franchisee; (c) the scope or validity of this Agreement or any other agreement between Franchisee and Hyatt or any of its Affiliates, or any provision of any of those agreements (including the validity and scope of the arbitration obligation under this Section 14.1, which Hyatt and Franchisee acknowledge is to be determined by an arbitrator, not a court); or (d) any aspect of the Hotel System or any System Standard, must be submitted for binding arbitration to the American Arbitration Association (the "AAA"). The arbitration proceedings will be conducted by one (1) arbitrator and, except as this Section 14.1 otherwise provides, according to the AAA's then current commercial arbitration rules. The arbitrator must be a licensed attorney, have hotel industry experience, and be listed on the AAA's National Roster of Neutrals (or such other equivalent replacement roster of experienced arbitrators that the AAA designates). All proceedings shall be conducted at a suitable location chosen by the arbitrator that is within ten (10) miles of Hyatt's then current principal business address. The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. Sections 1 et seq.) and not by any state arbitration law.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, any disputes between The Standardx (Hyatt) and the franchisee will be settled through binding arbitration administered by the American Arbitration Association (AAA). The arbitration proceedings will be overseen by a single arbitrator.
The arbitrator must be a licensed attorney with experience in the hotel industry and be listed on the AAA's National Roster of Neutrals or a similar replacement roster. The location for these proceedings will be selected by the arbitrator but must be within ten miles of The Standardx's principal business address. The arbitration process is governed by the Federal Arbitration Act.
This means that if a franchisee has a dispute with The Standardx, the decision will be made by one person who has specific qualifications, rather than a panel or a jury. The franchisee has limited influence on the location of the arbitration, as it must be near The Standardx's main office. The arbitrator's decision is binding, which means it is final and enforceable in court.