Who may be awarded the fees and expenses of the arbitration proceeding for Amorino?

According to Amorino's 2025 Franchise Disclosure Document, the arbitrator in an arbitration proceeding may award the fees and expenses of the proceeding to the prevailing party. If the arbitrator does not award these fees and expenses to the prevailing party, then each party involved will be responsible for their own fees, costs, and expenses. In this case, the charges of the arbitrator will be split between the parties.

This means that if a dispute arises between Amorino and a franchisee that goes to arbitration, the arbitrator has the discretion to decide who pays the costs. If the franchisee wins the arbitration, the arbitrator could order Amorino to pay the franchisee's legal fees and other expenses. Conversely, if Amorino wins, the franchisee could be responsible for Amorino's costs.

However, if the arbitrator does not determine a prevailing party, the franchisee will be responsible for their own legal fees and will have to split the cost of the arbitrator with Amorino. This arrangement is fairly typical in franchising, as it encourages both parties to approach arbitration reasonably, knowing they could be responsible for significant costs if they do not prevail. It is important to note that the arbitrator does not have the authority to amend or modify the terms of the franchise agreement, nor can they hear claims from more than one franchisee in a single proceeding.