Can the arbitrator in a Chem Dry dispute award specific performance?
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 a dispute is allowed to award specific performance. The document states that the arbitrator has the right to include in their award any relief they deem proper. This includes money damages, interest on unpaid amounts, specific performance, injunctive relief, and attorney's fees and costs. However, the arbitrator cannot declare any mark generic or invalid, or award punitive or exemplary damages except as expressly provided in Section 17.J.
This means that if a Chem Dry franchisee has a dispute with the company that goes to arbitration, the arbitrator has broad powers to order various types of remedies. For example, if Chem Dry was found to be in breach of contract, the arbitrator could order Chem Dry to take specific actions to fulfill its obligations under the agreement. This could be significant for a franchisee seeking to ensure Chem Dry adheres to the terms of the franchise agreement.
It is important to note that while the arbitrator has the power to award specific performance, there are limitations. They cannot declare any Chem Dry mark generic or otherwise invalid. Additionally, punitive or exemplary damages are generally waived, except as expressly provided in Section 17.J. This could limit the potential financial recovery for a franchisee in certain types of disputes.
Prospective Chem Dry franchisees should be aware of the arbitrator's powers and limitations, as it could impact the outcome of any potential disputes with the company. Understanding the types of relief an arbitrator can award is crucial for assessing the potential risks and benefits of entering into a franchise agreement with Chem Dry.