Can the arbitrator 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 related to the franchise has specific powers. The arbitrator is granted the authority to provide a full award that enforces the assignment, including expelling the franchisee from the premises and awarding possession to Amorino. The arbitrator can also grant other relief that is considered proper and fair under the law.
This means that while the arbitrator's primary focus is on resolving disputes related to the lease assignment, their powers extend to making decisions that directly impact the franchisee's ability to operate the business at the location. The arbitrator's role is to ensure the enforcement of the lease assignment terms and provide appropriate remedies.
However, the FDD excerpt does not explicitly state whether the arbitrator has the power to generally amend or modify the terms of the overall franchise agreement beyond issues related to the lease assignment. A prospective franchisee should seek clarification from Amorino regarding the arbitrator's full scope of authority in resolving disputes and whether this authority includes the ability to modify the franchise agreement itself.