Does the All County arbitrator have the right to make a determination as to unconscionability in a dispute?

According to All County's 2025 Franchise Disclosure Document, the arbitrator does have the authority to make a determination regarding unconscionability in a dispute. This means that if a franchisee argues that a particular aspect of the franchise agreement is so unfair or one-sided that it is unconscionable, the arbitrator has the power to consider and rule on that claim.

Specifically, the arbitrator will decide factual, procedural, or legal questions related to the dispute, including whether Article 25.14 is applicable and enforceable, and issues of subject matter, timeliness, scope, remedies, unconscionability, and any alleged fraud. This is a significant point for prospective franchisees because it clarifies that the arbitrator's role is comprehensive in resolving disputes.

This clause ensures that a neutral third party can assess the fairness of the agreement itself, which is a protection for franchisees against potentially overreaching terms. However, the arbitrator must follow the law and cannot disregard the terms of the agreement, and must have at least five years of experience in commercial law. The arbitrator's powers are also subject to the laws of the state in which All County's main office is located, which could introduce some variability depending on the specific state laws.