Can the arbitrator modify the terms of the Alloy Franchise Agreement?

According to Alloy's 2025 Franchise Disclosure Document, the arbitrator is not permitted to modify the terms of the Franchise Agreement. The document states that the arbitrator's decision is typically final and binding, but explicitly prohibits the arbitrator from making any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Alloy.

This limitation ensures that the core contractual obligations and standards established by Alloy remain intact throughout the arbitration process. It prevents an arbitrator from imposing new terms or altering existing ones, which could potentially undermine the consistency and uniformity of the Alloy franchise system.

For a prospective Alloy franchisee, this means that while arbitration can resolve disputes, the fundamental terms of the franchise agreement are protected from alteration by the arbitrator. This provides a level of certainty and predictability regarding the contractual obligations and performance standards that the franchisee must adhere to. However, it also means that if a franchisee seeks relief through arbitration, the arbitrator cannot change the terms of the agreement, even if the arbitrator believes those terms are unfair or unreasonable.