Can the Arbitrator award punitive damages to any party in a Benjamin Franklin Plumbing arbitration?

According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the arbitrator in any dispute will not have the authority to award punitive damages to any party. This limitation is explicitly stated within the section outlining the arbitration process.

This means that if a franchisee or Benjamin Franklin Plumbing engages in arbitration, the arbitrator's decision is restricted to actual damages suffered by the complaining party. The arbitrator cannot impose additional penalties intended to punish the wrongdoer or deter similar conduct in the future. This waiver of punitive damages is a mutual agreement, meaning it applies equally to both the franchisee and the franchisor.

However, it's important to note that Benjamin Franklin Plumbing retains the right to seek statutory, punitive, or exemplary damages for violations of the Lanham Act, trademark infringement or dilution, or unauthorized disclosure of confidential information or trade secrets. This exception suggests that while general punitive damages are waived in arbitration, the franchisor maintains the right to pursue such damages through litigation in specific cases involving intellectual property or confidential information.