What law must the arbitrator follow when resolving disputes for Alloy?

According to Alloy's 2025 Franchise Disclosure Document, the arbitrator resolving disputes must follow the law and not disregard the terms of the franchise agreement. The arbitrator cannot disregard the law based on principles of justice or equity that are not a specific part of the applicable law.

This means that when a dispute arises between Alloy and a franchisee that goes to arbitration, the arbitrator is bound by existing legal statutes and the specific terms outlined in the franchise agreement. They cannot make decisions based on their personal sense of fairness if it contradicts established law or the contract. This ensures that the arbitration process adheres to a legal framework and respects the contractual obligations agreed upon by both parties.

For a prospective Alloy franchisee, this clause provides a level of assurance that any dispute resolution will be grounded in law and the franchise agreement. It prevents an arbitrator from making arbitrary decisions based on subjective interpretations of fairness, which could potentially be detrimental to the franchisee. However, it also means that the franchisee must have a solid understanding of the legal and contractual landscape to effectively present their case during arbitration.