What is the arbitrator prohibited from doing regarding the terms of the Carbones Pizzeria franchise 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.
However, if an arbitrator determines that any contractual limitations period provided for in this Agreement is not applicable or enforceable, then the parties agree to be bound by the provision of any statute of limitations which would otherwise be applicable to the controversy, dispute or claim which is the subject of any arbitration proceeding initiated hereunder.
The arbitrator is expressly prohibited from determining whether class, mass, collective or consolidated relief is permitted hereunder or from awarding the same.
All findings, judgments, decisions and awards of the arbitrator shall be limited to the dispute or controversy set forth in the written demand for arbitration and response to that demand.
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 specifically prohibited from altering the franchise agreement. The arbitrator cannot add, delete, or modify the terms and provisions of the agreement in any way. Furthermore, the arbitrator is not allowed to excuse performance of any material term outlined in the agreement.
This means that the arbitrator's role is limited to interpreting the existing agreement and applying it to the dispute at hand. They cannot create new terms or waive existing obligations, ensuring that the original contract between Carbones Pizzeria and the franchisee remains intact throughout the dispute resolution process.
Additionally, the arbitrator cannot determine whether class, mass, collective, or consolidated relief is permitted or award such relief. The arbitrator's findings, judgments, decisions, and awards must be limited to the specific dispute outlined in the written demand for arbitration and the response to that demand.