Does the Amorino franchise agreement consider arbitration the exclusive remedy for disputes?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
nimum of three (3) hours. This obligation to mediate shall not apply to non-curable defaults by you.
C. Arbitration.
- (1) Except as otherwise provided in this Agreement, if the mediation is not successful, any controversy, claim, cause of action or dispute arising out of, or relating to your Store or this Agreement including, but not limited to (i) any claim by either party, or any person in privity with or claiming through, on behalf of or in the right of either party, concerning the entry into, performance under or termination of this Agreement or any other agreement entered into by Franchisor, or its subsidiaries or affiliates, and Franchisee, (ii) any claim against a past or present employee, officer, director or agent of either party, (iii) any claim of breach of this Agreement, and (iv) any claims arising under state or federal laws, shall be submitted to final and binding arbitration as the sole and exclusive remedy for any such controversy or dispute. Unless, prohibited by applicable law, and except with respect to claims for payment defaults, any claim shall be made by filing a written demand for arbitration within one (1) year from the date on which Franchisor or Franchisee knew or should have known, in the exercise of reasonable diligence, of the conduct, act or other event or occurrence first giving rise to the claim; otherwise, the right to any remedy shall be deemed forever waived and lost. Claims by Franchisor regarding payment defaults may be made at any time within the applicable legal statute of limitations. Claims allegedly in defense against claim for payment are barred if not made within the one-year period referred to above. Persons in privity with or claiming through, on behalf of or in the right of Franchisee and Franchisor include, but are not limited to, spouses and other family members, heirs, executors, representatives, successors and assigns.
- (2) The right and duty of the parties to this Agreement to resolve any disputes by arbitration shall be governed exclusively by the Federal Arbitration Act, as amended, and arbitration shall be conducted pursuant to the then-prevailing Commercial Arbitration Rules of the AAA. The arbitration shall be held at the office of the AAA in New York County, New York. Any dispute as to the arbitrability of any controversy, claim, cause of action or dispute shall also be determined by arbitration.
- (3) One arbitrator shall be selected from a panel of neutral arbitrators provided by the AAA and shall be chosen by the striking method. The fees and expenses of the proceeding may be awarded by the arbitrator to the prevailing party. If not so awarded, the parties shall bear their own fees, costs and expenses, and the charges of
the arbitrator shall be split between the parties. The arbitrator shall have no authority to amend or modify the terms of this Agreement. The arbitrator shall not have authority to hear or consider claims by more than one franchisee in any proceeding. This arbitration provision shall be deemed to be self-executing, and in the event that either party fails to appear at any properly noticed arbitration proceeding, an award may be entered against such party notwithstanding said failure to appear.
- D. Nonexclusivity of Remedy. No right or remedy conferred upon or reserved to us or you by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy in this Agreement or by law or equity provided or permitted, but each shall be cumulative of every other right or remedy.
- E. Injunctions. Nothing in this Agreement shall bar Amorino's right to seek injunctive relief against conduct or threatened conduct prohibited by this Agreement, from any court of competent jurisdiction;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino FDD, with some exceptions, arbitration is the sole and exclusive remedy for disputes arising from the franchise agreement. Specifically, if mediation fails, any controversy, claim, cause of action, or dispute relating to the store or the agreement must be submitted to final and binding arbitration. This includes claims related to the agreement's entry, performance, or termination, claims against employees, officers, or agents of either party, breach of contract claims, and claims arising under state or federal laws. This clause emphasizes that arbitration is intended to be the primary means of resolving conflicts between Amorino and its franchisees.
However, there are exceptions to this rule. Claims for payment defaults are not subject to the one-year limitation for demanding arbitration. Additionally, Amorino retains the right to seek injunctive relief against conduct that violates the agreement in any court of competent jurisdiction. This means that Amorino can pursue court orders to stop certain actions by a franchisee without first going through arbitration, particularly if those actions could cause irreparable harm.
The FDD also states that no right or remedy conferred upon either Amorino or the franchisee is intended to be exclusive of any other right or remedy available under the agreement, law, or equity. Both Amorino and the franchisee waive the right to a jury trial in any action, proceeding, or counterclaim brought against each other. They also waive any right to punitive or exemplary damages, limiting recovery to actual damages sustained. These provisions collectively shape the dispute resolution landscape for Amorino franchisees, emphasizing arbitration while preserving certain legal avenues and limiting potential financial exposure.