Is the arbitrator allowed to declare any mark generic or invalid during a Byrider franchise arbitration?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that the arbitrator may not declare any mark generic or otherwise invalid or, except as expressly provided in Section 20.8 below, award any punitive, exemplary or multiple damages against either party (each party hereby waiving to the fullest extent permitted by law, except as provided in Section 20.8 below, any right to or claim for any punitive or exemplary damages against the other).
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, during arbitration, the arbitrator does not have the authority to declare any of Byrider's marks generic or invalid.
However, the arbitrator can award relief deemed proper, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs. There is an exception regarding punitive, exemplary, or multiple damages, which are generally waived by both parties, except as expressly provided in Section 20.8 of the franchise agreement.
This limitation on the arbitrator's powers protects Byrider's trademarks and service marks. It ensures that even in a dispute, the validity and distinctiveness of the Byrider brand cannot be challenged or undermined through arbitration. This is a significant protection for the franchisor, as the brand's value is closely tied to its trademarks.
Prospective franchisees should understand that while they can pursue various forms of relief through arbitration, challenging the validity of the Byrider marks is not permitted in that forum. If a franchisee believes the marks are generic or invalid, they would likely need to pursue that claim in a different legal venue, if at all.