Can an All County arbitrator consider settlement discussions or offers?

According to All County's 2025 Franchise Disclosure Document, when disputes are submitted to binding arbitration, the arbitrator is specifically prohibited from considering any settlement discussions or offers made by either the franchisee or All County. This restriction ensures that the arbitrator's decision is based solely on the merits of the case and the applicable law, rather than on any prior attempts to resolve the dispute through negotiation.

This provision aims to maintain the integrity and impartiality of the arbitration process. By excluding settlement discussions, All County prevents the arbitrator from being influenced by offers or concessions made during negotiation, which might not fully reflect the legal positions of either party. This can be beneficial for franchisees as it ensures a decision based on the agreement and the law.

However, franchisees should be aware that this restriction applies only to the arbitration phase. Prior to arbitration, All County requires mediation, during which settlement discussions are expected and encouraged. The exclusion of settlement discussions in arbitration underscores the importance of thorough preparation and presentation of one's case, as the arbitrator's decision will be based solely on the evidence and arguments presented during the arbitration proceedings.

This approach is not uncommon in franchise agreements, as franchisors often seek to maintain a consistent and unbiased dispute resolution process. Franchisees should carefully consider the implications of this provision and seek legal counsel to understand their rights and obligations in the event of a dispute with All County.