Are there any limitations on the amount of damages a party can receive in a dispute with Christian Brothers Automotive?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, there are limitations on the amount of damages that can be awarded in arbitration. Specifically, the arbitrator(s) are not allowed to award damages in excess of compensatory damages. This means that the arbitrator can only award damages that directly compensate for the loss suffered, and cannot award punitive or other types of damages beyond the actual loss.

This limitation on damages could be beneficial for a Christian Brothers Automotive franchisee, as it caps the potential financial exposure in case of a dispute that goes to arbitration. It prevents the arbitrator from awarding excessively high damages that could be detrimental to the franchisee's business. However, it also means that the franchisee would be limited to recovering only compensatory damages if Christian Brothers Automotive is found to be at fault.

It is important for a prospective Christian Brothers Automotive franchisee to understand this limitation on damages and how it could impact them in the event of a dispute. While arbitration aims to resolve disputes efficiently, the restriction on the types of damages recoverable is a significant factor to consider. Franchisees should seek legal counsel to fully understand the implications of this clause and how it may affect their rights and remedies.