In proceeding with arbitration, can an arbitrator extend 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 Franchise Disclosure Document, an arbitrator is not permitted to extend, modify, or suspend any terms of the Franchise Agreement. Additionally, the arbitrator must adhere to the standards of business performance and operation established by Cilantro Taco Grill in good faith.
This restriction ensures that the arbitrator's role is limited to interpreting the existing agreement and resolving disputes within its established framework. It prevents an arbitrator from imposing new obligations or altering the fundamental terms agreed upon by both Cilantro Taco Grill and the franchisee.
This provision protects Cilantro Taco Grill from potential overreach by an arbitrator who might attempt to rewrite the agreement or impose terms that are inconsistent with the brand's standards. For a prospective franchisee, this means understanding that any disputes will be resolved based strictly on the existing contract, without the possibility of the arbitrator changing the terms.