What must the Chatime arbitrator include in the arbitration award?

According to Chatime's 2025 Franchise Disclosure Document, the arbitrator is required to include specific elements in the arbitration award. The arbitrator must provide findings on material questions of both law and fact. Furthermore, the arbitrator must include references to the evidence upon which the findings of fact were based.

This requirement ensures transparency and accountability in the arbitration process. By detailing the legal and factual basis for the award, Chatime franchisees can better understand the arbitrator's decision-making process. This also provides a foundation for potential appeals or challenges to the award, although the grounds for appeal in arbitration are typically limited.

This level of detail is not always mandated in standard arbitration agreements, so it represents a potentially beneficial provision for Chatime franchisees. It allows for a more informed review of the arbitrator's decision and can help ensure that the award is based on sound legal and factual reasoning. Franchisees should carefully consider the implications of this requirement when evaluating the franchise agreement.