In All County arbitration, can the arbitrator stay the effectiveness of any pending termination 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, an arbitrator cannot stay the effectiveness of any pending termination of the Franchise Agreement. The document explicitly states that the arbitrator is prohibited from staying any pending termination.
This restriction means that if All County decides to terminate the agreement, the termination proceeds without delay, even if the franchisee initiates arbitration to contest the termination. The franchisee must comply with the termination while the arbitration is ongoing, which could involve significant disruption to their business operations.
Additionally, the arbitrator cannot assess punitive or exemplary damages, certify a class or a consolidated action, or make any award that extends, modifies, or suspends any lawful term of the Agreement or any reasonable standard of business performance that All County sets. This further limits the arbitrator's power to provide remedies to the franchisee. Prospective franchisees should carefully consider these limitations on the arbitrator's authority before investing in an All County franchise.