Is the arbitrator allowed to amend or modify the terms of the Chicken Guy agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The arbitrator will have the right to award or include in the award any relief which the arbitrator deems proper under the circumstances, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and reasonable attorneys' fees and costs, provided that the arbitrator will not have the right to amend or modify the terms of this Agreement, declare any Proprietary Marks generic or otherwise invalid, or award any punitive or exemplary damages against either party (Chicken Guy and Developer hereby waiving to the fullest extent permitted by law any right to or claim for any punitive or exemplary damages against the other).
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the arbitrator does not have the authority to amend or modify the terms of the franchise agreement. While the arbitrator can award relief deemed proper, such as money damages, specific performance, injunctive relief, and reasonable attorneys' fees and costs, they are specifically prohibited from changing the agreement itself.
This limitation ensures that the original contract terms agreed upon by both Chicken Guy and the franchisee remain intact throughout the arbitration process. It prevents the arbitrator from imposing new obligations or altering existing ones, providing a level of predictability and stability for both parties. This is a fairly standard clause in franchise agreements, as franchisors want to ensure uniformity and protect their brand standards.
Furthermore, the arbitrator cannot declare any of Chicken Guy's proprietary marks as generic or invalid, protecting the brand's intellectual property. The agreement also includes a mutual waiver of punitive or exemplary damages, limiting potential financial exposure to actual damages sustained. This clause aims to keep the arbitration focused on resolving the specific dispute without escalating into broader claims for damages beyond the immediate impact.