Is the arbitration award from a Burneys Sweets More dispute appealable?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
ng. Therefore, the parties agree that, to the extent that any Actions cannot be resolved directly between Franchisee and Franchisor, and following compliance with the applicable mediation requirements set forth in Article 21(b)(i) above, any Action arising out of or relating to this Agreement or the making, performance, or interpretation thereof shall upon thirty (30) days written notice by either party be resolved, except as elsewhere expressly provided in this Agreement, upon application by any such party by binding arbitration in the city of Franchisor's then-current principal place of business (currently Elizabethtown, North Carolina), in accordance with the Federal Arbitration Act using the Commercial Arbitration Rules then prevailing of the American Arbitration Association, including without limitation the Optional Rules for Emergency Measures of Protection ("AAA"), and not under any state arbitration laws, and judgment on the arbitration award may be entered in any court of competent jurisdiction. The arbitrator need not be affiliated the AAA. Franchisee and Franchisor agree that arbitration shall be conducted on an individual - not a class-wide basis. The Federal Arbitration Act shall apply to all arbitration and arbitration venue questions.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, any award by the arbitrator(s) in a dispute is final, binding, and nonappealable. This means that if a franchisee and Burneys Sweets More have a dispute that goes to arbitration, the arbitrator's decision is the final word and cannot be appealed to a higher court. This clause is intended to provide a swift and conclusive resolution to disagreements.
This non-appealable condition has significant implications for a prospective Burneys Sweets More franchisee. It underscores the importance of carefully considering all aspects of the franchise agreement before signing. Franchisees need to be confident in their understanding of the agreement and their ability to resolve disputes effectively through the arbitration process, as there will be no recourse to appeal an unfavorable decision.
In the event of a dispute, the arbitration will take place in the city of Burneys Sweets More's principal place of business, which is currently Elizabethtown, North Carolina. The arbitration will be conducted according to the Federal Arbitration Act, using the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator should have at least ten years of experience practicing franchise law. Franchisees also waive their rights to a jury trial and other appeal rights they might have in court.