Under what conditions can the arbitrator's award be appealed in a Carbones Pizzeria dispute?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator shall issue a reasoned award.
Judgment upon the award of the arbitrator may be entered in any court having jurisdiction thereof.
The award shall be binding, final, and nonappealable except as permitted under the United States Arbitration Act or for failure of the arbitrator to meet the requirements of this Section.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the arbitrator's award is generally binding, final, and nonappealable. However, there are specific conditions under which an appeal is permitted.
The award can be appealed as permitted under the United States Arbitration Act. This act outlines specific circumstances where an arbitration award can be vacated or modified, such as evident partiality or corruption on the part of the arbitrator, or if the arbitrator exceeded their powers.
Additionally, the award can be appealed if the arbitrator fails to meet the requirements outlined in Section 17 of the franchise agreement. While the FDD excerpt does not specify what those requirements are, it is important for a prospective franchisee to review Section 17 of the franchise agreement carefully to understand the specific obligations the arbitrator must fulfill to avoid the award being subject to appeal.