In Cinch I.T.'s arbitration, can the arbitrator suspend any terms of the agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
inding arbitration under the auspices of, and using the commercial arbitration rules of, the American Arbitration Association as such rules are in effect as of the date the demand for arbitration is filed. In accordance with the terms of the Federal Arbitration Act, the Arbitrator shall hear the dispute in the American Arbitration Association offices in Worcester, Massachusetts or their closest office thereto. The arbitrator shall have no authority to amend or modify the terms of this Agreement. Each party further agrees that, unless a limitation is prohibited by applicable law, the other party shall not be liable for punitive or exemplary damages and the arbitrator shall have no authority to award the same.
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 suspending any terms of the franchise agreement. The document states that the arbitrator does not have the authority to amend or modify the terms of the agreement.
This restriction ensures that the arbitrator's role is limited to interpreting and applying the existing terms of the agreement, rather than altering them. This protects Cinch I.T.'s standardized business practices and prevents franchisees from seeking to change the contractual obligations they agreed to.
Furthermore, the FDD specifies that notice of or a request for arbitration will not delay or cancel any termination of the agreement. This means that even if a franchisee initiates arbitration, any prior termination of the agreement by Cinch I.T. remains in effect. This clause is designed to prevent franchisees from using arbitration as a means to stall or avoid the consequences of a terminated agreement.