Does the All County arbitrator have the right to make a determination as to subject matter 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.
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 authority to decide on subject matter disputes. The arbitrator will decide any factual, procedural, or legal questions relating in any way to the dispute between the parties. This includes decisions on subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud in the inducement.
This means that an All County franchisee entering into arbitration with the franchisor must recognize that the arbitrator's powers are broad. The arbitrator's decisions extend to the fundamental issues in the dispute, such as whether the dispute is even the right type of issue to be arbitrated (subject matter), whether the claim was brought too late (timeliness), and what the overall reach of the dispute is (scope).
Furthermore, the arbitrator can also rule on potential defenses a franchisee might raise, such as claiming the franchise agreement is unfair (unconscionability) or that the franchisee was tricked into signing it (fraud in the inducement). The arbitrator also has the power to decide what remedies are available, meaning what kind of compensation or relief the franchisee or franchisor might be entitled to.
All County franchisees should be aware of the arbitrator's extensive decision-making power, as it covers many critical aspects of any potential dispute. Franchisees should seek legal counsel to fully understand the implications of these arbitration terms.