What authority does the arbitrator NOT have in Brightstar Care arbitration proceedings?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator has the right to award any relief he or she deems proper in the circumstances, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs (in accordance with Section 19.2 below), provided that: (1) the arbitrator has no authority to declare any Licensed Mark generic or otherwise invalid; and (2) as provided in Section 15.9, you waive to the fullest extent that applicable law permits any right to or claim for any punitive, exemplary, treble, and other forms of damages.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, an arbitrator in a dispute is limited in their authority. While the arbitrator can award relief deemed proper, including monetary damages, specific performance, injunctive relief, and attorneys' fees and costs, they cannot declare any Licensed Mark generic or otherwise invalid.
Additionally, the franchisee waives any right to claim punitive, exemplary, treble, and other forms of damages to the fullest extent that applicable law permits. This means a franchisee is limited to recovering actual losses rather than being able to seek additional penalties in arbitration.
This limitation on the arbitrator's authority and the franchisee's damage claims is significant for prospective Brightstar Care franchisees. It restricts the potential remedies available through arbitration, which could be a disadvantage in disputes with the franchisor. Franchisees should consider this limitation and its potential impact when evaluating the franchise agreement and deciding whether to invest in a Brightstar Care franchise.