Is an All County arbitrator allowed to modify any lawful term 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 is explicitly prohibited from modifying any lawful term of the franchise agreement. The FDD states that the arbitrator in any dispute resolution process "may not under any circumstances... make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set." This ensures that the original terms of the agreement, as signed by both All County and the franchisee, remain intact throughout any arbitration proceedings.
This restriction on the arbitrator's power is a significant protection for both the franchisor and the franchisee. It prevents an arbitrator from unilaterally altering the contractual obligations and rights agreed upon by both parties. For a prospective All County franchisee, this means that the core terms of the franchise agreement, such as the term length, fees, and operational standards, are less susceptible to change through arbitration.
However, the arbitrator does have the authority to make determinations on procedural matters, factual and legal questions related to the dispute, and can issue various orders and relief. The arbitrator must also follow the law and has subpoena powers. While the arbitrator cannot modify the agreement itself, they can interpret and apply its terms within the bounds of the law. This balance of power ensures that disputes are resolved fairly while upholding the integrity of the original contract.