In Cinch I.T.'s arbitration, can the arbitrator extend any terms of the agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) In proceeding with Arbitration and in making determinations hereunder, the Arbitrator shall not extend, modify or suspend any terms of this Agreement or the reasonable standards of business performance and operation established by Us in good faith. Notice of or request to or demand for arbitration shall not stay, postpone or rescind the effectiveness of any termination of this Agreement. In the event that either Party fails to appear at any properly noticed arbitration proceeding, an award may be entered against such Party notwithstanding said failure to appear.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the arbitrator in any arbitration proceeding is explicitly prohibited from extending, modifying, or suspending any terms of the franchise agreement. This limitation ensures that the arbitrator's role is strictly to interpret the existing agreement, not to rewrite or alter its conditions.
This restriction is further reinforced by the stipulation that the arbitrator must adhere to the reasonable standards of business performance and operation established by Cinch I.T. in good faith. This means the arbitrator cannot impose new standards or deviate from those already set by the company. The FDD also states that a notice, request, or demand for arbitration does not halt or cancel any termination of the agreement.
For a prospective Cinch I.T. franchisee, this clause means that any dispute resolution through arbitration will be based solely on the original terms of the franchise agreement. The arbitrator's decision will be confined to the existing contractual obligations and standards, providing a predictable framework for resolving conflicts. Franchisees should be aware that they cannot seek to use arbitration to change the terms of their agreement or delay its termination.