Does the All Team franchise agreement allow for specific performance as a remedy in arbitration?
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 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement allows an arbitrator to award specific performance as a remedy. The arbitrator has the right to include in their award any relief deemed proper, encompassing money damages with interest, specific performance, and attorney's fees and costs. However, the arbitrator cannot award punitive, exemplary, or consequential damages, as these are waived by both parties.
This means that if a dispute arises that goes to arbitration, the arbitrator has the authority to order either All Team or the franchisee to take specific actions to fulfill their obligations under the franchise agreement. This could include, for example, ordering All Team to provide certain support services or ordering the franchisee to adhere to specific operational standards.
It is important to note that the arbitrator's award is binding and conclusive, and judgment upon the award may be entered in any court of competent jurisdiction. However, All Team retains the right to appeal the arbitration award in Federal or State Court if the arbitrator's award is not reasoned or not consistent with the terms of the agreement. This ensures that the arbitration process adheres to the agreement's stipulations and provides a mechanism for appeal if necessary.