What must the arbitrator include in the arbitration award for a Chatime franchise dispute?

According to Chatime's 2025 Franchise Disclosure Document, the arbitrator is required to include specific elements in the arbitration award. The award must contain findings on material questions of both law and fact. Furthermore, these findings must include references to the evidence upon which the factual findings were based. This requirement ensures transparency and a clear record of the arbitrator's reasoning in reaching a decision.

For a prospective Chatime franchisee, this means that if a dispute arises and goes to arbitration, the resulting award will not be a simple declaration of the winner. Instead, it will provide a detailed explanation of the legal and factual basis for the decision. This can be beneficial for understanding the outcome and potentially for any subsequent legal proceedings or appeals, although the FDD also states that all proceedings in the Arbitration shall be strictly confidential.

This level of detail in arbitration awards is not always standard across all franchise systems. Some franchise agreements may allow for more summary awards. The Chatime FDD's requirement for detailed findings and evidence references suggests a commitment to a more thorough and transparent arbitration process. Franchisees should be aware of this provision and understand its implications for dispute resolution.

It's important to note that while the arbitrator must provide detailed findings, they do not have the authority to amend or modify the terms of the Franchise Agreement itself. The arbitrator's role is to interpret and apply the existing agreement, not to rewrite it. Additionally, the franchisee is restricted from bringing group, collective, or class action claims against Chatime.