Under what rules and procedures will arbitration be conducted for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
The prevailing party in any arbitration, insolvency proceeding, bankruptcy proceeding, suit, or action to enforce this Agreement will recover its arbitration, proceeding, and court costs and reasonable attorneys' fees.
These will be set by the arbitration, proceeding or court,
including costs and attorneys' fees on appeal or review from the arbitration, proceeding, suit, or action. "Prevailing party" means the party who recovers the greater relief in the proceeding.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the prevailing party in any arbitration involving Afuri Ramen Dumpling will be able to recover arbitration, proceeding, and court costs, including reasonable attorney's fees. These costs and fees will be determined by the arbitration, proceeding, or court, encompassing expenses related to appeals or reviews. The "prevailing party" is defined as the party that secures the most significant relief in the legal action.
This clause ensures that the party who wins the arbitration has the opportunity to recoup the expenses incurred during the process. This can be a significant benefit, as legal battles can be costly. It also incentivizes parties to present strong cases, knowing that they may be compensated for their expenses if they prevail.
However, it's important to note that the determination of who is the prevailing party and the amount of costs and fees awarded is at the discretion of the arbitrator or court. This introduces an element of uncertainty, as the outcome can depend on the specific circumstances of the case and the interpretation of the relevant laws. Prospective Afuri Ramen Dumpling franchisees should carefully consider this clause and seek legal counsel to fully understand its implications.