What rules govern the arbitration proceeding for disputes related to the Carvel franchise agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Arbitration. Except as stated in Section 19.1.D. (Excepted Disputes) of this Agreement, all disputes between you, your affiliates, Owners, guarantors, and/or your or your affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Franchised Business, will be resolved by binding arbitration. The arbitration proceeding shall be conducted by one arbitrator and, except as this Section 19.1 otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association (the "AAA"). All arbitration proceedings will be held at AAA's offices or other suitable offices that we select in the metropolitan area in which our principal place of business is then located. The arbitrator shall have no authority to select a different hearing locale. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.).
- B. Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 19.1, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 19.1, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with Section 19.1.D. (Excepted Disputes).
- C. Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, disputes related to the franchise agreement will be resolved through binding arbitration, except for specific exceptions outlined in Section 19.1.D. The arbitration will involve one arbitrator and adhere to the American Arbitration Association's (AAA) Commercial Arbitration Rules, unless otherwise specified in Section 19.1. The arbitration proceedings will occur at the AAA's offices or another location selected by Carvel within the metropolitan area of their principal business. The Federal Arbitration Act governs all arbitration-related matters.
Arbitration will be conducted on an individual basis, meaning class-wide arbitrations or consolidated proceedings are not permitted. However, if a court or arbitrator deems the prohibition on class-wide arbitration unenforceable, the arbitration clause will not apply, and the dispute will be resolved in a judicial proceeding as per Section 19.1.D.
The arbitrator has the authority to award relief, including monetary damages (with interest on unpaid amounts from the due date), specific performance, injunctive relief, and attorneys' fees and costs. The arbitrator can include any relief they deem proper in their award.