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

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, an arbitrator is not permitted to suspend any terms of the Franchise 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. This also applies to the reasonable standards of business performance and operation established by Cilantro Taco Grill in good faith.

This provision ensures that the arbitrator's role is limited to interpreting the existing agreement and resolving disputes within its framework, rather than altering the terms themselves. This protects Cilantro Taco Grill from having an arbitrator impose new or different obligations than what was originally agreed upon.

For a prospective franchisee, this means that the terms of the franchise agreement are firm and cannot be changed by an arbitrator during a dispute. Franchisees should carefully review and understand all terms and conditions before signing the agreement, as these will be the basis for resolving any potential conflicts through arbitration. This clause aims to provide predictability and stability in the franchise relationship, as neither party can seek to unilaterally alter the agreement through arbitration.