What instructions are given to the arbitrator regarding the law and 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.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the arbitrator is required to adhere to specific guidelines when resolving disputes. The arbitrator must follow the substantive law, as well as all other requirements, waivers, and limitations outlined in the franchise agreement. This means the arbitrator's decisions must be grounded in the legal framework and contractual obligations established in the agreement.
Furthermore, the arbitrator is explicitly prohibited from altering the terms of the agreement. They cannot add, delete, or modify any of the provisions, nor can they excuse a party from fulfilling a material term of the agreement. This ensures that the arbitrator's role is to interpret and apply the existing agreement, not to rewrite it.
However, there is an exception regarding contractual limitations periods. If the arbitrator determines that any limitations period within the agreement is not applicable or enforceable, the parties will 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. These instructions ensure that the arbitration process remains focused on the individual dispute and adheres to legal standards, while also respecting the original intent and terms of the Carbones Pizzeria franchise agreement.