Is the arbitrator's award in a Bft arbitration final and binding?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The interim and final awards of the arbitrator shall be final and binding upon each Party, and judgment upon the arbitrator's awards may be entered in any court of competent jurisdiction.
The arbitrator has the right to award or include in his or her awards any relief which he or she deems proper, including money damages, pre- and post-award interest, interim costs and attorneys' fees, specific performance, and injunctive relief, provided that the arbitrator may not declare any of the trademarks owned by Franchisor, or its parents, affiliates, and subsidiaries, generic or otherwise invalid, or award any punitive or exemplary damages against any Party to the arbitration proceeding (Franchisor and Franchisee hereby waiving to the fullest extent permitted by law any such right to or claim for any punitive or exemplary damages against any Party to the arbitration proceeding). Except as otherwise stated in this Agreement, the arbitrator shall have no authority to issue any relief on any basis other than an individual basis.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the interim and final awards made by the arbitrator are considered final and binding for each party involved. This means that once the arbitrator makes a decision, both Bft and the franchisee must adhere to it. The judgment upon the arbitrator's awards may be entered in any court of competent jurisdiction.
The arbitrator has the authority to include in their awards any relief they deem proper, such as money damages, pre- and post-award interest, interim costs and attorneys' fees, specific performance, and injunctive relief. However, the arbitrator cannot declare any of Bft's trademarks generic or invalid, nor can they award punitive or exemplary damages against any party in the arbitration. Both Bft and the franchisee waive their rights to claim punitive or exemplary damages to the fullest extent permitted by law.
This clause ensures that the arbitration process is conclusive, limiting further legal challenges and promoting efficient dispute resolution. However, it's important to note the limitations on the arbitrator's powers, particularly regarding trademarks and damages, which could impact the potential outcomes of arbitration. Prospective franchisees should understand that while the arbitration decision is binding, certain types of relief may not be available.