In an All Team arbitration, is the arbitrator's award conclusive and binding on all parties?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The award and decision of the arbitrator will be conclusive and binding upon all parties, and judgment upon the award may be entered in any court of competent jurisdiction; however, the arbitrator may not under any circumstances: (1) stay the effectiveness of any pending termination of this Agreement; or (2) make any award which extends, modified or suspends any lawful term of this Agreement. Each party waives any right to contest the validity or enforceability of the award of an arbitrator under this Section except to the extent permitted by applicable law. The arbitrator must submit a reasoned award and this award must be consistent with the terms of this Agreement. If the arbitrator's award is not reasoned or not consistent with the terms of this Agreement, then notwithstanding the foregoing, ATFC may appeal the arbitration award in Federal or State Court. An arbitration award or decision entered in any other case (whether or not ATFC was a party) will not be binding on ATFC in any other dispute, will have no precedential value and cannot be used as evidence in any other proceeding.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the arbitrator's award and decision are generally conclusive and binding upon all parties involved in the arbitration. This means that once the arbitrator makes a decision, it is final and enforceable in any court of competent jurisdiction.
However, there are some exceptions to this rule. All Team retains the right to appeal the arbitration award in Federal or State Court if the arbitrator's award is not reasoned or is inconsistent with the terms of the franchise agreement. This provides All Team with a mechanism to challenge an unfavorable arbitration outcome under specific circumstances.
Furthermore, an arbitration award or decision entered in any other case, regardless of whether All Team was a party, will not be binding on All Team in any other dispute. Such decisions will have no precedential value and cannot be used as evidence in any other proceeding. This ensures that each dispute is evaluated independently and that All Team is not unduly influenced by previous arbitration outcomes.