What is the arbitrator authorized to include in his or her award relating to a Bang Cookies dispute?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Except as may be otherwise required and/or prohibited by this Agreement including, but not limited to Articles 18.I., 18.J., 18.N, 18.O., 18.R., 18.T., and 18.X. of this Agreement, the arbitrator has the right to award or include in his or her award any relief that he or she determines to be proper, including monetary damages, interest on unpaid sums, specific performance, injunctive relief, attorneys' fees, and costs and expenses as allowable under this Agreement. Notwithstanding the foregoing, under no circumstance shall the Arbitrator be authorized to award or declare the Licensed Marks to be generic or invalid;
- (e) They shall each be bound to the limitations periods set forth in Article 18.I. of this Agreement and that, in any arbitration proceeding, Franchisor and Franchisee must each timely submit, within the same arbitration proceeding, any claim that would constitute a compulsory counterclaim as such claims are defined and set forth under Rule 13 of the United States Federal Rules of Civil Procedure. Any claim that is not submitted or filed as required shall be forever barred;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the arbitrator in a dispute has broad authority to determine appropriate relief, subject to certain limitations. The arbitrator can award monetary damages, including interest on unpaid sums, specific performance, and injunctive relief. Additionally, the arbitrator can award attorneys' fees, costs, and expenses if allowable under the Franchise Agreement.
However, the arbitrator's authority is not unlimited. The arbitrator cannot declare the Licensed Marks to be generic or invalid. Furthermore, both the franchisor and franchisee are bound by the limitations periods set forth in the agreement and must submit any compulsory counterclaims within the same arbitration proceeding, as defined by Rule 13 of the United States Federal Rules of Civil Procedure. Failure to submit claims as required will result in those claims being barred.
This means that a prospective Bang Cookies franchisee should understand the types of relief an arbitrator can grant in a dispute, as well as the restrictions on the arbitrator's power. It is also crucial to be aware of the deadlines for submitting claims and counterclaims in any arbitration proceeding to avoid forfeiting those claims. Franchisees should carefully review the sections of the Franchise Agreement referenced in the FDD to fully understand these limitations and requirements.