Who has the exclusive authority to resolve disputes relating to the interpretation, applicability, or enforceability of the arbitration section for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator will have the right to award or include in his award any relief which he deems proper in the circumstances, including money damages (with interest on unpaid amounts from date due), specific performance, and attorneys' fees and costs; however, the arbitrator will not be allowed to award or include in his award any punitive, exemplary, or consequential damages, to which the parties waive any right. The arbitrator, and not any federal, state, or local court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, or enforceability of this Section, including but not limited to, any claim that all or any part of this Section is void or voidable. 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, and not any federal, state, or local court or agency, has exclusive authority to resolve disputes regarding the interpretation, applicability, or enforceability of the arbitration section. This includes any claim that all or part of the section is void or voidable.
This means that if a dispute arises concerning the arbitration process itself, such as what it covers or whether it's valid, the arbitrator will be the sole decision-maker. This is a significant point for prospective All Team franchisees because it removes the possibility of taking these specific types of disputes to a traditional court system. Instead, the decision rests solely with the selected arbitrator.
However, the arbitrator's powers are not unlimited. The arbitrator cannot stay the effectiveness of any pending termination of the agreement or make any award that extends, modifies, or suspends any lawful term of the agreement. Furthermore, if the arbitrator's award is not reasoned or consistent with the terms of the agreement, All Team has the right to appeal the arbitration award in Federal or State Court. This provides a check on the arbitrator's authority and ensures that the terms of the franchise agreement are upheld.