In All County arbitration, what happens if the arbitrator disregards the terms of the Agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.12.2.2.
Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or any other proceeding involving third parties.
If a court or arbitrator determines that this limitation or joinder of or class action certification of claims is unenforceable, then the agreement to arbitrate the dispute will be null and void and the parties must submit all claims to the jurisdiction of the courts, in accordance with Article 25.14.
- 25.12.2.4.
The arbitrator must follow the law and not disregard the terms of this Agreement.
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 not disregard the terms of the franchise agreement. However, if a court or arbitrator determines that the limitation or joinder of or class action certification of claims is unenforceable, then the agreement to arbitrate the dispute will be null and void. In this case, all claims must be submitted to the jurisdiction of the courts, in accordance with Article 25.14 of the All County franchise agreement.
This means that All County franchisees are expected to adhere to the terms of the franchise agreement during arbitration. If the arbitrator fails to do so, the agreement to arbitrate becomes void. This clause protects All County by ensuring that the arbitrator's decisions align with the original contractual obligations and legal standards.
For a prospective All County franchisee, this condition highlights the importance of understanding the franchise agreement and its implications for dispute resolution. While arbitration is intended to be a streamlined process, the clause ensures that the underlying agreement remains the governing document. Franchisees should seek legal counsel to fully understand their rights and obligations under the agreement, especially concerning dispute resolution and potential waivers of arbitration.