Can an arbitrator excuse performance of a material term of the Carbones Pizzeria Agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator will be instructed that he or she must follow the substantive law and the other requirements, waivers and limitations of this Agreement.
The arbitrator shall have no authority to add, delete or modify in any manner, the terms and provisions of this Agreement and may not excuse performance of a material term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, an arbitrator is explicitly prohibited from excusing the performance of a material term of the franchise agreement. The FDD states that the arbitrator must follow the substantive law and requirements of the agreement and cannot add, delete, or modify any terms.
This means that if a dispute arises and goes to arbitration, the arbitrator must uphold the original terms of the agreement as written. A prospective Carbones Pizzeria franchisee should understand that the arbitrator's role is to interpret and apply the existing agreement, not to change or waive any of its material requirements. This limitation ensures that both Carbones Pizzeria and the franchisee are held accountable to the initially agreed-upon obligations.
This provision protects the integrity of the Carbones Pizzeria franchise agreement by preventing an arbitrator from unilaterally altering its fundamental terms. Franchisees should carefully review all terms and conditions before signing the agreement, as an arbitrator cannot excuse non-performance of any material term, even if circumstances change.