Can an arbitrator extend, modify, or suspend any terms of the Cilantro Taco Grill agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3.5 In proceeding with arbitration and in making determinations hereunder, no arbitrator shall extend, modify or suspend any terms of this Agreement or the reasonable standards of business performance and operation established by Franchisor in good faith.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill FDD, an arbitrator does not have the authority to extend, modify, or suspend any terms of the franchise agreement. The FDD explicitly states that the arbitrator is bound by the original terms and standards set forth by Cilantro Taco Grill.
This limitation on the arbitrator's power ensures that the fundamental terms of the agreement remain intact during any dispute resolution process. It prevents an arbitrator from unilaterally altering the obligations, rights, or responsibilities of either the franchisor or the franchisee. This protects the consistency and predictability of the franchise system.
This provision is fairly standard in franchise agreements, as franchisors typically want to maintain uniformity and control over their brand and operations. Franchisees should be aware that arbitration decisions will be based on the existing agreement, and they cannot expect an arbitrator to change the terms to their advantage.