Is the arbitrator allowed to declare any Chem Dry mark generic or invalid?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
The arbitrator shall have the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief and attorneys' fees and costs, provided that the arbitrator may not declare any Mark generic or otherwise invalid or, except as expressly provided in Section 17.J. below, award any punitive or exemplary damages against either party.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the arbitrator in any dispute is specifically prohibited from declaring any Chem Dry mark generic or otherwise invalid. This protects Chem Dry's trademarks and brand identity.
This restriction on the arbitrator's power is significant for prospective franchisees. It means that in any dispute resolution via arbitration, a franchisee cannot argue that the Chem Dry trademarks have become generic or are otherwise not legally protected. This clause reinforces the value and legal standing of the Chem Dry brand.
This type of clause is relatively common in franchise agreements, as franchisors need to protect their trademarks, which are a critical asset of the franchise system. Franchisees benefit from a strong, protected brand, but they also accept the restriction that they cannot challenge the validity of the franchisor's trademarks during arbitration.