What law must the arbitrator follow when arbitrating a Carbones Pizzeria dispute?
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.
The arbitrator shall issue a reasoned award.
Judgment upon the award of the arbitrator may be entered in any court having jurisdiction thereof.
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 instructed to follow the substantive law, requirements, waivers, and limitations outlined in the franchise agreement. The arbitrator cannot add to, delete, or modify the terms of the agreement, nor excuse performance of a material term. However, if any contractual limitations period is deemed unenforceable, the parties agree to be bound by the statute of limitations that would otherwise apply to the dispute.
This means that when a dispute arises between a Carbones Pizzeria franchisee and the franchisor and proceeds to arbitration, the arbitrator's decision must be grounded in the specifics of the franchise agreement itself. The arbitrator's role is to interpret and apply the existing agreement, not to create new terms or disregard valid provisions. This protects both the franchisee and franchisor by ensuring the arbitration remains focused on the agreed-upon contractual obligations.
However, the arbitrator is expressly prohibited from determining whether class, mass, collective or consolidated relief is permitted 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. The arbitrator shall issue a reasoned award. Judgment upon the award of the arbitrator may be entered in any court having jurisdiction thereof.