What is the arbitrator prohibited from doing to the terms 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.
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.
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 any dispute resolution through arbitration must adhere strictly to the original terms of the franchise agreement. The arbitrator's role is to interpret and apply the existing agreement, not to rewrite it or excuse either party from fulfilling their obligations. This limitation ensures that the foundational contract remains intact and enforceable, providing a stable framework for the franchise relationship.
However, there is an exception regarding contractual limitations periods. If an arbitrator determines that any contractual limitations period within the agreement is not applicable or enforceable, the parties agree to be bound by the statute of limitations that would otherwise apply to the dispute. The arbitrator is also prohibited from determining whether class, mass, collective, or consolidated relief is permitted or from awarding such relief. This ensures that disputes are handled on an individual basis, preventing large-scale actions through arbitration.