Can the arbitrator declare Anago's trademarks generic or invalid?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that the arbitrator may not declare any of the trademarks owned by Franchisor or Franchisor's affiliates generic or otherwise invalid or, except as expressly provided in this Section, award any punitive, exemplary, or multiple damages against any party to the arbitration proceeding (Franchisor and Subfranchisor hereby waive to the fullest extent permitted by law any such right to or claim for any punitive, exemplary, or multiple damages against any party to the arbitration proceedings).
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, in any arbitration proceeding, the arbitrator does not have the authority to declare any of Anago's trademarks generic or invalid. This protects Anago's brand identity and prevents franchisees from challenging the validity of the trademarks during a dispute.
This limitation on the arbitrator's power is significant for prospective franchisees. It means that if a dispute arises and goes to arbitration, the franchisee cannot argue that Anago's trademarks are unenforceable. This provision strengthens Anago's position in arbitration and ensures that its trademarks remain protected.
This type of clause is relatively common in franchise agreements. Franchisors typically want to protect their trademarks and prevent franchisees from undermining their brand. By including this restriction, Anago aims to maintain control over its brand and ensure consistent use of its trademarks across all franchise locations.