Can arbitrators modify any lawful term of the Black Bear Diner agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
The decision of the arbitrators will be final and binding on all parties to the dispute; however, the arbitrators 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.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, arbitrators do not have the authority to modify any lawful term of the agreement. The document specifies that while arbitration is binding, the arbitrators are restricted from making any award that "extends, modifies or suspends any lawful term" of the agreement. This limitation ensures that the fundamental terms of the franchise agreement remain intact and are not subject to alteration through arbitration.
This provision is designed to protect the integrity of the Black Bear Diner franchise agreement. It prevents arbitrators from imposing changes that could fundamentally alter the business relationship between the franchisor and franchisee. This restriction is in place to maintain uniformity and predictability across all Black Bear Diner franchises, ensuring that all franchisees operate under the same basic set of rules and obligations.
For a prospective Black Bear Diner franchisee, this means that the core contractual terms are secure and cannot be unilaterally changed by an arbitrator. While arbitration can resolve disputes, it will not result in modifications to the franchise agreement itself. This provides a level of assurance that the agreement you sign will remain consistent throughout the term of the franchise, subject to any amendments agreed upon by both parties.