In All County arbitration, is the arbitrator allowed to disregard the terms of the Agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator must follow the law and not disregard the terms of this Agreement.
The arbitrator must have at least five (5) years of significant experience in commercial law.
The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us.
The arbitrator may not under any circumstances (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the arbitrator in any arbitration proceeding is explicitly required to follow the law and adhere to the terms of the franchise agreement. This means the arbitrator cannot make decisions that contradict or ignore what is written in the agreement.
Furthermore, the arbitrator is restricted in several ways. They cannot halt a pending termination of the agreement, award punitive or exemplary damages, certify a class or consolidated action, or make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by All County. These limitations ensure that the arbitrator's decisions remain within the bounds of the agreement and applicable law.
The arbitrator must possess at least five years of significant experience in commercial law. The arbitrator also cannot consider any settlement discussions or offers made by either party. The arbitration itself will be administered by the American Arbitration Association (AAA) according to its Commercial Arbitration Rules. This framework provides a structured and regulated process for resolving disputes, with specific constraints on the arbitrator's authority to protect the integrity of the franchise agreement.