Who is responsible for the fees and expenses of the arbitration proceeding for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 make such an award, each party will bear their own fees, costs, and expenses. In this scenario, the charges of the arbitrator will be split between the parties.
This means that a prospective Amorino franchisee could potentially be responsible for their own legal fees, as well as a portion of the arbitrator's fees, regardless of the outcome of the arbitration, if the arbitrator does not determine a prevailing party. This is a standard clause in many franchise agreements, as it provides a framework for managing costs associated with dispute resolution.
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 or consider claims by more than one franchisee in a single proceeding. This ensures that each dispute is handled individually and that the original terms of the agreement are upheld.