factual

Can the arbitrator(s) modify any lawful term of the Batteries Plus Bulbs franchise agreement?

Batteries_Plus_Bulbs Franchise · 2025 FDD

Answer from 2025 FDD Document

The decision of the arbitrator(s) will be final and binding on all parties; provided, however, the arbitrator(s) may not under any circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance set by Franchisor.

Source: Item 22 — Contracts (FDD page 80)

What This Means (2025 FDD)

According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the arbitrator(s) do not have the authority to modify or suspend any lawful term of the Franchise Agreement or any reasonable standard of business performance set by Batteries Plus Bulbs. The decision of the arbitrator(s) will be final and binding on all parties, with specific limitations on their powers.

Specifically, the arbitrator(s) cannot stay the effectiveness of any pending termination of the agreement or assess punitive or exemplary damages. This ensures that the arbitrator's role is limited to interpreting the existing agreement and resolving disputes within its framework, rather than rewriting the terms or imposing penalties outside the scope of the contract.

This limitation on the arbitrator's authority is a significant factor for prospective franchisees to consider. It means that the terms agreed upon in the franchise agreement are binding and cannot be altered through arbitration. Franchisees should carefully review and understand all terms before signing the agreement, as these terms will govern the relationship with Batteries Plus Bulbs and any potential disputes that may arise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.