What is the scope of the arbitrators' authority in a Craters & Freighters arbitration?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.3.1 Authority of Arbitrators.
The arbitrators will not have any authority to add, delete, or modify in any manner, the terms and provisions of this Agreement.
All findings, judgments, and awards will be limited to the dispute set forth in the written demands.
All decisions by the arbitrators will be made in writing not later
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the arbitrators in a dispute are limited in their authority. They cannot add to, delete from, or modify any of the terms outlined in the Franchise Agreement. This means the arbitrators must base their decisions strictly on the existing contract language, without introducing new elements or changing the agreed-upon terms.
The arbitrators' findings, judgments, and awards must be confined to the specific dispute presented in the written demands. This ensures that the arbitration remains focused on the issues brought forward by the parties involved and prevents the arbitrators from expanding the scope of the proceedings beyond what was initially requested.
All decisions made by the arbitrators must be provided in writing within ten days after the hearing concludes. While any judgment can be entered in a court with jurisdiction, Craters & Freighters retains the right to seek injunctive or other relief from a court, regardless of the arbitration outcome. This suggests that while arbitration is used for dispute resolution, Craters & Freighters preserves its ability to pursue certain legal remedies through the court system.