Who determines the prevailing party for attorney's fees in Afuri Ramen Dumpling arbitration?

According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, in the event of binding arbitration, the arbitrator will determine the prevailing party for the purposes of awarding attorney's fees. The arbitrator is also allowed to make a percentage award of reimbursable fees and expenses.

This means that if a dispute between Afuri Ramen Dumpling and a franchisee goes to arbitration, the arbitrator, not a judge or jury, will decide which party is the winner. The 'prevailing party' is significant because that party is entitled to recover their arbitration and court costs, as well as reasonable legal fees, from the other party.

This clause incentivizes both Afuri Ramen Dumpling and its franchisees to present strong cases during arbitration, as the cost of losing could include covering the other party's legal expenses. It also gives the arbitrator discretion to award a percentage of fees and expenses, rather than a fixed amount, which could be influenced by the complexity or scale of the dispute.