Does the arbitration section survive termination or nonrenewal of the Batteries Plus Bulbs franchise agreement?

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, Section 19 of the franchise agreement, which pertains to arbitration, explicitly survives the termination or nonrenewal of the agreement. This means that even after the franchise agreement ends, the arbitration clause remains in effect for resolving disputes.

This survival clause is significant for prospective franchisees because it dictates how disputes will be resolved even after the franchise relationship concludes. Instead of resorting to court litigation, both Batteries Plus Bulbs and the franchisee must use arbitration to settle any disagreements related to the agreement, its performance, or interpretation, including claims of fraud. This can have implications for the cost, speed, and privacy of dispute resolution.

It is important to note that while the arbitration clause survives termination, there are limitations on what the arbitrator(s) can decide. Specifically, the arbitrator(s) cannot stay the effectiveness of any pending termination, assess punitive damages, or make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Batteries Plus Bulbs. This ensures that the arbitrator's powers are limited and do not override the franchisor's rights after termination or nonrenewal.