Can the arbitrator in an Afuri Ramen Dumpling dispute alter the franchise agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
The arbitrator will have power and jurisdiction to decide the controversy or dispute solely according to the express provisions of this Agreement.
The arbitrator may not alter, amend, delete, or add to the provisions of this Agreement by implication or otherwise.
In any arbitration the parties will be entitled to injunctive relief or specific performance of the obligations of the other.
The arbitrator will determine the prevailing party for purposes of the subsection entitled "Attorneys' Fees" below and may make a percentage award of reimbursable fees and expenses.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, in the event of binding arbitration to resolve disputes, the arbitrator's power is explicitly limited. The arbitrator has the authority to make decisions based solely on the express provisions outlined in the franchise agreement.
Specifically, the franchise agreement states that the arbitrator is not permitted to alter, amend, delete, or add to any of the provisions within the agreement, whether through implication or any other means. This ensures that the arbitrator's role is to interpret and apply the existing terms of the agreement, rather than to modify or create new ones.
This limitation on the arbitrator's authority provides a level of certainty for both Afuri Ramen Dumpling and its franchisees, as it prevents the arbitrator from unilaterally changing the terms of the franchise agreement. However, the arbitrator can award injunctive relief or specific performance of obligations. Any issues regarding the appropriateness of arbitration or the enforcement of the arbitration agreement will be governed by the Federal Arbitration Act and federal common law.