In All County arbitration, is the arbitrator required to follow the law?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.12.2.4.
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 must follow the law and is prohibited from disregarding the terms of the Franchise Agreement. The arbitrator must possess a minimum of five years of significant experience in commercial law.
Furthermore, the arbitrator is granted the authority to make determinations on procedural matters, mirroring the powers of a court of competent jurisdiction within the state where All County's main office is located. The arbitrator also decides factual, procedural, and legal questions related to disputes, including the applicability and enforceability of Article 25.14, subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud.
This mandate ensures that legal standards are upheld during arbitration, providing a level of protection for both All County and the franchisee. However, the arbitrator's powers are also specifically limited. For instance, the arbitrator cannot stay the effectiveness of any pending termination of the agreement, assess 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.