Who is responsible for the fees and expenses of the arbitration proceeding for Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
tor 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.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the responsibility for fees and expenses in an arbitration proceeding depends on the arbitrator's decision. The arbitrator has the authority to award these fees and expenses to the prevailing party.
However, if the arbitrator does not award the fees and expenses to the prevailing party, then each party involved in the arbitration is responsible for covering their own fees, costs, and expenses. In this scenario, the charges assessed by the arbitrator will be split evenly between the parties.
The FDD specifies that the arbitrator cannot modify the terms of the franchise agreement or consider claims from multiple franchisees in a single proceeding. The arbitration provision is self-executing, meaning that an award can be issued against a party even if they fail to attend the arbitration proceeding after receiving proper notice.
This arrangement is fairly standard in franchising, where arbitration is often used to resolve disputes. Prospective Amorino franchisees should understand that they may be responsible for their own legal costs and a portion of the arbitrator's fees, which can be a significant expense.