In a Coffee News arbitration, can the arbitrator award relief at equity?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisor's request, the arbitrator shall require Franchisee to produce all books and records of the Franchisee's business for Franchisor's examination and use as evidence in the arbitration. The arbitrator shall have the authority to award all relief at law or equity but shall not have the authority to award exemplary or punitive damages. The award and decision of the arbitrator shall be conclusive and binding upon the parties and judgment upon the award may be entered in any court of competent jurisdiction identified in paragraph 16.2 above, including an order pursuant to an opinion of the arbitrator for specific performance of any of the requirements of this Agreement. Franchisor and Franchisee agree that any contest of such award shall be in the courts specified in Paragraph 16.2 above. The arbitrator shall not add, delete, modify or amend any of the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, in arbitration proceedings, the arbitrator has the authority to award all relief at law or equity. However, the arbitrator does not have the authority to award exemplary or punitive damages.
This means that a Coffee News franchisee can potentially obtain remedies such as specific performance, which compels a party to fulfill the terms of the franchise agreement, or other equitable remedies to resolve disputes. The arbitrator's decision is binding, and a judgment can be entered in any court of competent jurisdiction, including an order for specific performance of the agreement's requirements.
It is important to note that the arbitrator cannot add, delete, modify, or amend any terms of the Coffee News franchise agreement. This ensures that the arbitrator's role is to interpret the existing agreement, not to rewrite it. Any contest of the arbitration award must occur in the courts specified in the agreement.
During any dispute or arbitration, the terms of the Coffee News agreement remain in full force and effect for all parties. This includes the franchisee's obligation to pay all fees due according to Schedule A and to continue using the trademark.