Must arbitration be conducted in accordance with the terms of the Casiola franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
In connection with binding arbitration, Franchisor and Franchisee further agree that:
(a) All matters relating to arbitration, will be governed by the United States Federal Arbitration Act, except as expressly or otherwise set forth in this Agreement;
(b) The arbitration hearing shall be conducted within 180 days of the demand for arbitration;
(c) The arbitrator shall render written findings of fact and conclusions of law;
(d) Except as may be otherwise required and/or prohibited by this Agreement including, but not limited to Articles 18.I., 18.J., 18.N., 18.O., 18.R., 18.T., and 18.X. of this Agreement, the arbitrator has the right to award or include in his or her award any relief that he or she determines to be proper, including monetary damages, interest on unpaid sums, specific performance, injunctive relief, attorneys' fees, and costs and expenses as allowable under this Agreement.
Notwithstanding the foregoing, under no circumstance shall the Arbitrator be authorized to award or declare the Licensed Marks to be descriptive or invalid;
- (e) They shall each be bound to the limitation's periods set forth in Article 18.I. of this Agreement and that, in any arbitration proceeding, Franchisor and Franchisee must each timely submit, within the same arbitration proceeding, any claim that would constitute a compulsory counterclaim as such claims are defined and set forth under Rule 13 of the United States Federal Rules of Civil Procedure.
Any claim that is not submitted or filed as required shall be forever barred;
(f) Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction; and
(g) Arbitration and/or any arbitration award must be conducted in accordance with the terms of this Agreement including, but not limited to, the requirements set forth in this Article 18.
(3) Consent to Jurisdiction and Venue Subject to the non-binding mediation and arbitration provisions set forth in this Article 18.G., Franchisor and Franchisee agree that any judicial action or legal proceeding must be brought in a court of competent jurisdiction located within Florida and within Orange County or the county closest to Orange County.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, arbitration must be conducted in accordance with the terms of the Franchise Agreement. Casiola and the franchisee agree that arbitration, including any arbitration award, must adhere to the requirements outlined in Article 18 of the agreement. This encompasses all aspects of the arbitration process.
Specifically, all matters relating to arbitration will be governed by the United States Federal Arbitration Act, unless expressly stated otherwise in the agreement. The arbitration hearing must be conducted within 180 days of the demand for arbitration, ensuring a relatively swift resolution process. The arbitrator is required to provide written findings of fact and conclusions of law, offering transparency and a clear rationale for the decision.
The arbitrator has the authority to award any relief deemed proper, including monetary damages, interest, specific performance, injunctive relief, attorney's fees, and costs, except that the arbitrator cannot declare the Licensed Marks to be descriptive or invalid. Both Casiola and the franchisee are bound by the limitation periods set forth in Article 18.I of the agreement and must submit any compulsory counterclaims within the same arbitration proceeding, as defined by Rule 13 of the United States Federal Rules of Civil Procedure. Failure to submit claims as required results in them being permanently barred.
Furthermore, any judicial action or legal proceeding must be brought in a court of competent jurisdiction located within Florida, specifically in Orange County or the closest county. This clause ensures that legal matters are handled within a specific geographic location, potentially adding convenience for Casiola. However, franchisees in states like Illinois and Maryland should note specific amendments that may grant them rights to bring lawsuits within their own states under certain conditions, as detailed in state-specific addenda to the Franchise Agreement.