Is the arbitrator's decision binding on both parties 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 Beverly Anns Cookie's 2025 Franchise Disclosure Document, the arbitrator's decision is binding on both parties. The FDD specifies that after the arbitrator issues a written decision explaining the basis for it, judgment upon the decision may be entered in any court having jurisdiction. This clause ensures that the arbitration result is legally enforceable.
This means that once the arbitration process is complete, both Beverly Anns Cookie and the franchisee must adhere to the arbitrator's ruling. This includes any monetary damages, specific performance requirements, or injunctive and declaratory relief that the arbitrator deems appropriate. The arbitrator has the authority to assess actual damages for breaches of the Franchise Agreement, including monetary damages, interest, and legal fees.
However, the arbitrator cannot amend or modify the terms of the Franchise Agreement or award exemplary or punitive damages. This limitation ensures that the arbitrator's power is confined to resolving disputes within the existing contractual framework, rather than altering the agreement itself. This binding decision helps provide a final resolution to disputes, preventing prolonged legal battles, and offering a more efficient and cost-effective alternative to traditional litigation.