Is the arbitrator allowed to declare any 7 Brew mark generic or invalid?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
provided that: (i) the arbitrator has no authority to declare any Mark generic or otherwise invalid; and (ii) subject to the exceptions in Section 21.I, we and you waive to the fullest extent the Law permits any right to or claim for any punitive, exemplary, treble, and other forms of multiple damages against the other. The arbitrator's award and decision will be conclusive and bind all parties covered by this Section, and judgment upon the award may be entered in a court specified or permitted in Section 21.H below.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, an arbitrator in any dispute is explicitly prohibited from declaring any of 7 Brew's marks as generic or invalid. This limitation on the arbitrator's authority is a specific condition outlined in the franchise agreement.
This provision means that a franchisee cannot argue in arbitration that 7 Brew's trademarks have become so widely used that they no longer distinguish 7 Brew's products or services. This protects 7 Brew's brand identity and prevents franchisees from challenging the validity of the trademarks in an arbitration setting.
For a prospective franchisee, this clause signifies that any disputes will be resolved without the possibility of questioning the fundamental validity of 7 Brew's trademarks. This strengthens 7 Brew's position in potential disputes and ensures that the brand's intellectual property rights remain unchallenged during arbitration proceedings.