What relief can the arbitrator award in an Angry Chickz franchise dispute?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
17.1.2 The arbitrator shall have the right to award or include in his or her award any relief which he or she deems proper in the circumstances, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief and attorneys' fees and costs, provided that: (1) the arbitrator shall not have authority to declare any Mark generic or otherwise invalid; and (2) except for punitive, exemplary and other forms of multiple damages available to any party under federal law or owed to third parties which are subject to indemnification under this Agreement, Company and Franchisee waive to the fullest extent permitted by law any right to or claim for any punitive, exemplary or other forms of multiple damages against the other and agree that, in the event of a dispute between Company and Franchisee, the party making a claim will be limited to equitable relief and to recovery of any liquidated damages set forth herein and actual damages it sustains. The award and decision of the arbitrator shall be conclusive and binding upon all parties hereto and judgment upon the award may be entered in any court of competent jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, in the event of a dispute that goes to arbitration, the arbitrator has broad authority to determine appropriate relief. This includes financial remedies such as money damages, with interest applied to unpaid amounts from their due date. The arbitrator can also order specific performance, which compels a party to fulfill their contractual obligations, and issue injunctive relief, which is a court order that requires a party to do or refrain from doing specific acts. The arbitrator can also award attorneys' fees and costs.
However, there are limitations to the arbitrator's power. The arbitrator cannot declare any of Angry Chickz's trademarks generic or invalid. Additionally, both Angry Chickz and the franchisee waive their rights to claim punitive, exemplary, or other forms of multiple damages against each other, except for those available under federal law or owed to third parties subject to indemnification. In a dispute between Angry Chickz and a franchisee, the claiming party is limited to equitable relief, recovery of liquidated damages as specified in the agreement, and actual damages sustained.
This means that while an Angry Chickz franchisee can seek compensation for direct losses and legal expenses in an arbitration, they generally cannot pursue additional penalties or increased damages from Angry Chickz unless federal law dictates otherwise. The arbitrator's decision is binding, and judgment upon the award can be entered in any court with competent jurisdiction. This clause aims to limit the potential financial exposure of both parties in case of a dispute, encouraging resolution based on actual losses rather than punitive measures.