Does the All County arbitrator have the right to make a determination as to scope in a dispute?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator will also decide any factual, procedural, or legal questions relating in any way to the dispute between the parties, including, but not limited to: any decision as to whether Article 25.14 is applicable and enforceable as against the parties, subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement.
The arbitrator will have the right to make a determination as to any procedural matters as would a court of competent jurisdiction be permitted to make in the state in which the main office of Franchisor is located.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the arbitrator does have the right to make a determination as to scope in a dispute. The arbitrator will decide any factual, procedural, or legal questions relating in any way to the dispute between the parties. This includes any decision as to whether Article 25.14 is applicable and enforceable as against the parties, subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement.
This means that the arbitrator has broad authority to determine the boundaries and parameters of the dispute, including what issues are relevant and what evidence can be considered. This is a significant power, as it can impact the outcome of the arbitration. The arbitrator also has the right to make a determination as to any procedural matters as would a court of competent jurisdiction be permitted to make in the state in which the main office of All County is located.
For a prospective All County franchisee, this means that if a dispute arises with All County that goes to arbitration, the arbitrator will have considerable control over the process and the scope of the issues to be decided. The franchisee should be aware of this and consider it when deciding whether to enter into a franchise agreement with All County. The franchisee should also consult with an attorney to understand the implications of the arbitration clause and the arbitrator's powers.