Is the arbitrator's award and decision binding on all parties in a 7 Brew franchise arbitration?
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.
We and you will be bound by any limitation under this Agreement or applicable Law, whichever expires first, on the timeframe in which claims must be brought. We and you further agree that, in connection with any arbitration proceeding, each must submit or file any claim constituting a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim not submitted or filed in the proceeding will be barred. The arbitrator may not consider any settlement discussions or offers either you or we made. We reserve the right, but have no obligation, to advance your share of the costs of any arbitration proceeding in order for the arbitration proceeding to take place and by doing so do not waive or relinquish our right to seek recovery of those costs in accordance with Section 21.C above.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the arbitrator's award and decision will be conclusive and bind all parties involved in the arbitration, subject to certain conditions. This means that once the arbitrator makes a decision, all parties covered by the arbitration agreement are legally obligated to follow it. Judgment upon the award may be entered in a court specified or permitted in Section 21.H of the franchise agreement.
However, there are limitations to the arbitrator's authority. The arbitrator cannot declare any of 7 Brew's marks generic or invalid. Additionally, both 7 Brew and the franchisee waive any right to claim punitive, exemplary, treble, or other forms of multiple damages against each other, except as outlined in Section 21.I of the agreement.
Both 7 Brew and the franchisee are bound by any timeframe limitations in the agreement or applicable law for bringing claims, with the shorter timeframe taking precedence. Any claim constituting a compulsory counterclaim must be submitted or filed within the same arbitration proceeding, or it will be barred. The arbitrator is also prohibited from considering any settlement discussions or offers made by either party. 7 Brew retains the right, but not the obligation, to advance the franchisee's share of arbitration costs, without waiving its right to seek recovery of those costs later.