In proceeding with arbitration, can an arbitrator modify any terms of the Cilantro Taco Grill Agreement?

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, an arbitrator is not permitted to modify the terms of the agreement. Specifically, the FDD states that in proceeding with arbitration and making determinations, no arbitrator is allowed to extend, modify, or suspend any terms of the agreement. The arbitrator must also adhere to the reasonable standards of business performance and operation established by Cilantro Taco Grill in good faith.

This restriction ensures that the arbitrator's role is to interpret the existing agreement, not to rewrite it. This protects the consistency and predictability of the franchise system, preventing arbitrary changes to the contractual obligations of either party. Franchisees can expect that the terms they agreed to will be upheld during arbitration, and Cilantro Taco Grill can maintain its operational standards.

This provision aims to maintain the integrity of the Cilantro Taco Grill franchise agreement by preventing an arbitrator from imposing new or altered terms. It focuses the arbitration on resolving disputes within the bounds of the original contract, providing a level of certainty for both the franchisee and the franchisor. Franchisees should be aware of this limitation when considering arbitration as a dispute resolution method, as it means they cannot seek to change the fundamental terms of their agreement through this process.