Is the arbitrator allowed to amend or modify the terms of the Amorino franchise agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of any dispute between the parties regarding this Assignment, or any matter related in any way to it, the dispute resolution provisions (including, but not limited to, mediation, binding arbitration, waiver of jury trial and limitation of damages) of the Franchise Agreement between the Franchisor and Franchisee shall apply. The arbitrator in any such proceeding shall have the full power and authority to grant an appropriate award to give full effect to this Assignment, expelling Franchisee from the Premises and awarding possession to the Franchisor, as well as granting such other relief as may be proper and fair at law and by equity.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
Based on the 2025 Amorino Franchise Disclosure Document, the arbitrator in a dispute regarding the assignment of a lease agreement has the authority to grant an appropriate award to give full effect to the assignment. This includes expelling the franchisee from the premises and awarding possession to Amorino, as well as granting other relief that is proper and fair under the law and in equity.
This means that while the arbitrator's powers are broad in the context of disputes related to the assignment, the arbitrator's primary focus is on enforcing the assignment agreement and ensuring Amorino can take possession of the premises if necessary. The arbitrator's role is to interpret and apply the existing agreements rather than to rewrite or modify the fundamental terms established in the original franchise agreement.
For a prospective franchisee, this highlights the importance of understanding the terms of the lease assignment and the potential consequences of disputes related to it. While the arbitrator can provide remedies and relief, they are bound by the existing agreements and cannot unilaterally change the terms of the franchise agreement. Therefore, franchisees should carefully review all agreements and seek legal counsel to fully understand their rights and obligations.