Can the arbitrator award specific performance in an arbitration with Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator will issue a written decision within ten days after conclusion of the hearing, explaining the basis for the decision.
Judgment upon the decision rendered by the arbitrator may be entered in any court having jurisdiction.
This decision will be binding upon both parties.
The arbitrator will have authority to assess actual damages sustained by reason of any breach or wrongful termination of this Franchise Agreement, including monetary damages and interest on unpaid amounts from date due, specific performance, injunctive and declaratory relief, and legal fees and costs, but will not have any authority to amend or modify the terms of this Franchise Agreement or to assess exemplary or punitive damages.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the arbitrator has the authority to award specific performance in the event of a breach or wrongful termination of the Franchise Agreement. The arbitrator's powers extend to assessing actual damages, including monetary damages, interest on unpaid amounts, and legal fees and costs. However, the arbitrator cannot amend or modify the terms of the Franchise Agreement or award exemplary or punitive damages.
This means that if a dispute arises and goes to arbitration, the arbitrator can order either Beverly Anns Cookie or the franchisee to fulfill their obligations as outlined in the Franchise Agreement. This could include actions like requiring Beverly Anns Cookie to provide certain support services or requiring the franchisee to adhere to specific operational standards. The arbitrator's decision is binding on both parties, providing a resolution that both Beverly Anns Cookie and the franchisee must adhere to.
It is important to note that this authority is subject to certain exceptions. For example, disputes involving the validity of Beverly Anns Cookie's trademarks or intellectual property are not subject to arbitration. In such cases, either party may immediately file a lawsuit. Additionally, the arbitrator's decision must be issued within ten days after the conclusion of the hearing, and the entire arbitration process should ideally be completed within nine months of filing the notice of intention to arbitrate.
For a prospective franchisee, this clause offers a degree of assurance that disputes can be resolved through a fair and binding process. However, it is crucial to understand the limitations of the arbitrator's authority and the types of claims that are excluded from arbitration. Franchisees should also be aware of the time constraints imposed on the arbitration process and the potential costs involved, as the fees and costs of the arbitrator are shared equally by the parties, although the prevailing party may recover these costs from the other party.