Does the All County arbitrator have the right to make a determination as to remedies in a dispute?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
to the jurisdiction of the courts, in accordance with Article 25.14.
- 25.12.2.3. The arbitration must take place in the city closest to where our headquarters is located at the time of the dispute.
- 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 has the authority to decide on remedies in a dispute. The document states that the arbitrator will decide any factual, procedural, or legal questions relating to the dispute between the parties, including subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud.
This means that if a dispute arises between All County and a franchisee that proceeds to arbitration, the arbitrator has broad authority to determine the appropriate resolution. This includes not only deciding who is at fault but also determining what specific remedies or compensation should be awarded.
However, the arbitrator cannot assess punitive or exemplary damages, certify a class or a consolidated action, or make any award which extends, modifies, or suspends any lawful term of the Franchise Agreement or any reasonable standard of business performance that All County sets. The arbitrator is also bound to follow the law and not disregard the terms of the agreement.