Is the arbitrator allowed to amend or modify the terms of the Chicken Guy Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchisee 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 22 — CONTRACTS (FDD page 50)
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. However, the arbitrator can award relief deemed proper, including money damages, specific performance, injunctive relief, and reasonable attorneys' fees and costs.
This limitation on the arbitrator's power means that the underlying terms of the Chicken Guy franchise agreement remain fixed during any dispute resolution. While an arbitrator can enforce the existing terms and provide remedies for breaches, they cannot rewrite the agreement or change the obligations of either party. This protects the integrity of the standardized franchise agreement.
This clause also specifies that the arbitrator cannot declare any of Chicken Guy's proprietary marks as generic or invalid, further protecting the brand's intellectual property. Additionally, the arbitrator is prohibited from awarding punitive or exemplary damages against either party, with both Chicken Guy and the franchisee waiving any right to claim such damages to the fullest extent permitted by law. This aims to limit the financial exposure of both parties in arbitration and keep the focus on compensatory damages.