Can the arbitrator declare Clean Your Dirty Face trademarks generic or invalid?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that the arbitrator may not declare any of the trademarks owned by us or our affiliates generic or invalid or, except as expressly provided in this Section 17, award any punitive, exemplary, or multiple damages against any party to the arbitration proceeding (we and you hereby waiving to the fullest extent permitted by law any such right to or claim for any punitive, exemplary, or multiple damages against any party to the arbitration proceedings).
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, in the event of arbitration, the arbitrator does not have the authority to declare any of Clean Your Dirty Face's trademarks generic or invalid.
This stipulation protects Clean Your Dirty Face's brand identity and associated goodwill. It ensures that even in a dispute requiring arbitration, the validity and distinctiveness of the Clean Your Dirty Face trademarks cannot be challenged or undermined by the arbitrator's decision. This is a standard practice in franchising, as the trademark is a critical asset for the franchisor and the entire franchise system.
This limitation on the arbitrator's power is favorable for Clean Your Dirty Face, as it maintains control over its brand and trademarks. However, it could be a point of consideration for a franchisee who might want to challenge the validity of the trademarks in certain dispute scenarios. Prospective franchisees should be aware of this restriction and its potential implications for dispute resolution.