Is the arbitrator allowed to declare any Chem Dry mark generic or invalid during arbitration?
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, an arbitrator is specifically prohibited from declaring any Chem Dry mark generic or otherwise invalid. This restriction is outlined within the section detailing the arbitration process.
This provision means that during any arbitration proceedings between a Chem Dry franchisee and the franchisor, the arbitrator's authority is limited. While the arbitrator can award various forms of relief, such as monetary damages, specific performance, or injunctive relief, they cannot rule on the validity of Chem Dry's trademarks. This protects Chem Dry's brand identity and prevents franchisees from challenging the trademark's strength through arbitration.
For a prospective Chem Dry franchisee, this clause signifies that disputes resolved through arbitration will not jeopardize the Chem Dry brand's trademarks. It ensures that the franchisor's intellectual property rights remain secure, as an arbitrator cannot invalidate or declare the marks generic. This provision offers Chem Dry some protection of its brand and associated goodwill.