Can the arbitrator declare any of the trademarks owned by Anago or its affiliates generic or otherwise 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, an arbitrator in a dispute is not permitted to declare any of Anago's trademarks or those of its affiliates as generic or invalid. This restriction is in place even though the arbitrator has the right to award various forms of relief, including monetary damages, specific performance, injunctive relief, and attorneys' fees and costs.
This provision protects Anago's brand identity and proprietary marks. It ensures that even in arbitration, the validity and distinctiveness of the Anago trademarks cannot be challenged or undermined. This is a significant protection for the franchisor, as the brand name and associated marks are critical assets for the franchise system.
For a prospective Anago franchisee, this means that any disputes that go to arbitration will not jeopardize the Anago brand. The franchisee can be assured that the arbitrator's decisions will not impact the trademarks' legal standing. This clause is intended to provide stability and security to the Anago franchise system by preserving the integrity of its trademarks.