What relief can the arbitrator award in a Body20 arbitration proceeding?
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 against the other).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the arbitrator in an arbitration proceeding has broad authority to award relief. This includes monetary damages, with interest on unpaid amounts calculated from the date they were due. The arbitrator can also order specific performance, compelling a party to fulfill their contractual obligations, and issue injunctive relief, which can prevent a party from taking certain actions. Additionally, the arbitrator can award attorneys' fees and costs to the prevailing party, calculated on a solicitor and its own client basis.
However, there are limitations on the arbitrator's power. The arbitrator cannot declare any of Body20's marks as generic or invalid, and, with limited exceptions, cannot award special, consequential, exemplary, or punitive damages against either party. Both Body20 and the franchisee waive their rights to claim such damages, except as expressly provided in Section 16.5 regarding the mutual waiver of punitive damages.
This means that while a Body20 franchisee can seek compensation for direct losses and legal expenses in arbitration, they are generally barred from recovering damages intended to punish the other party or compensate for indirect losses. This mutual waiver of certain types of damages can impact the potential financial outcomes of arbitration for both the franchisee and Body20.