For Counselor Realty franchise disputes, what is the impact of the arbitration award on all parties involved?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1 Arbitration. Except as provided below, any dispute arising under or in relation to this Agreement shall be resolved by binding arbitration by the National Center for Dispute Settlement, under its rules for expedited commercial arbitration, in Minneapolis, Minnesota. Each claim or controversy will be arbitrated by Franchisee on an individual basis, and will not be consolidated in any arbitration action with the claim of any other franchisee. The award of the arbitrators is final and binding on all parties. The arbitrators may issue appropriate orders as well as award monetary (but not exemplary or punitive) damages. The prevailing party will be entitled to recover its costs including its reasonable attorneys' fees. We may sue to collect money owed to us, to protect or enforce our rights in the Marks, or to compel inspections or audits.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, any dispute arising from the franchise agreement will be resolved through binding arbitration. The arbitration will be conducted by the National Center for Dispute Settlement, following its rules for expedited commercial arbitration, and will take place in Minneapolis, Minnesota. Each franchisee's claim will be arbitrated individually and not consolidated with claims from other franchisees.
The arbitration award is considered final and binding on all parties involved, meaning both Counselor Realty and the franchisee must adhere to the arbitrator's decision. The arbitrators are authorized to issue appropriate orders and award monetary damages, but they cannot award exemplary or punitive damages. The prevailing party in the arbitration is entitled to recover their costs, including reasonable attorney's fees.
Counselor Realty retains the right to sue a franchisee in certain situations, specifically to collect money owed, protect or enforce rights in their trademarks, or compel inspections or audits. Additionally, Counselor Realty can seek immediate injunctive relief in the event of a breach or threatened breach of the franchise agreement, without needing to post a bond or prove actual damages.