Does the Body20 franchise agreement allow the arbitrator to award attorney's fees?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid
amounts from the date due), specific performance, injunctive relief, and attorneys' fees (on a solicitor and its own client basis) and costs, provided that the arbitrator may declare any Mark generic or otherwise invalid or, except as expressly provided in Section 16.5 (Mutual Waiver of Punitive Damages), award any special, consequential, exemplary, or punitive damages against either party (we and you hereby waiving to the fullest extent permitted by law, except as expressly provided in Section 16.5 below, any right to or claim for any special, consequential, exemplary, or punitive damages
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the arbitrator in a dispute resolution has the authority to award attorney's fees. Specifically, the franchise agreement outlines that the arbitrator can include in their award any relief they deem proper, encompassing money damages, specific performance, injunctive relief, and attorney's fees. This allowance for attorney's fees is on a solicitor and its own client basis.
However, there are limitations to the arbitrator's power. The arbitrator cannot declare any mark generic or otherwise invalid. Furthermore, except as expressly provided in the section concerning the mutual waiver of punitive damages, the arbitrator is restricted from awarding any special, consequential, exemplary, or punitive damages against either party. Both Body20 and the franchisee waive any right to or claim for such damages to the fullest extent permitted by law, except as expressly provided in the mentioned section.
This clause ensures that while franchisees have a route to recover attorney's fees in arbitration, they also waive the right to pursue certain types of damages, such as punitive or exemplary damages, which are intended to punish the breaching party. This mutual waiver can be a significant consideration for prospective franchisees, as it limits the potential financial recovery in case of a dispute but also protects them from similar claims by Body20.