What relief can the arbitrator award in a dispute between Chicken Guy and the Developer?

According to Chicken Guy's 2025 Franchise Disclosure Document, in disputes subject to arbitration, the arbitrator has broad authority to determine appropriate relief. This includes the power to award money damages, including interest on unpaid amounts from the date they were due. The arbitrator can also order specific performance, compelling a party to fulfill their contractual obligations, and issue injunctive relief, which is a court order requiring a party to do or cease doing a specific action. Additionally, the arbitrator can award reasonable attorneys' fees and costs to the prevailing party.

However, there are limitations to the arbitrator's power. The arbitrator cannot amend or modify the terms of the franchise agreement. They also cannot declare any of Chicken Guy's proprietary marks generic or invalid. Importantly, the arbitrator is prohibited from awarding punitive or exemplary damages against either Chicken Guy or the developer, as both parties waive any right to claim such damages to the fullest extent permitted by law.

This means that while a Chicken Guy developer can seek compensation for actual losses, specific actions to be performed, or legal cost recovery, they cannot seek to alter the fundamental terms of the agreement through arbitration or receive extra damages intended to punish the other party. This waiver of punitive damages is a significant point for prospective franchisees to consider, as it limits the potential financial recovery in case of a dispute with the franchisor.