What relief can the arbitrator award in a dispute between Chicken Guy and the franchisee?
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 Franchisee hereby waiving to the fullest extent permitted by law any right to or claim for any punitive or exemplary damages against the other).
The award and decision of the arbitrator will be conclusive and binding upon all parties, and judgment upon the award may be entered in any court of competent jurisdiction.
- (2) Chicken Guy and Franchisee agree to be bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law.
Chicken Guy and Franchisee further agree that, in connection with any such arbitration proceeding, each must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, in the event of a dispute, the arbitrator has broad authority to determine appropriate relief. This includes the ability to award money damages, with interest accruing on unpaid amounts from the date they were due. The arbitrator can also order specific performance, compelling a party to fulfill their contractual obligations, or grant 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, declare any of Chicken Guy's Proprietary Marks generic or invalid, or award punitive or exemplary damages against either party. Both Chicken Guy and the franchisee waive any right to claim punitive or exemplary damages to the fullest extent permitted by law. This means that the arbitrator is restricted to compensating actual losses and cannot impose additional penalties.
This arbitration process is governed by the Federal Arbitration Act, ensuring a consistent legal framework. The arbitrator's decision is conclusive and binding, and judgment upon the award can be entered in any court of competent jurisdiction. This provides a clear and enforceable resolution mechanism for disputes arising between Chicken Guy and its franchisees, but it's important to note the restrictions on the types of damages that can be awarded.