Can the arbitrator declare Cream's trademarks generic or invalid?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator has the right to award or include in his or her awards any relief which he or she deems proper, including money damages, pre- and post-award interest, interim costs and attorneys' fees, specific performance, and injunctive relief, provided that the arbitrator may not declare any of the trademarks owned by us or our affiliates generic or otherwise invalid, or award any punitive or exemplary 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 or exemplary damages against any party to the arbitration proceeding).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, an arbitrator does not have the authority to declare Cream's trademarks generic or invalid. This is explicitly stated within the section that outlines the arbitration process.
This limitation on the arbitrator's power is significant for prospective franchisees. It means that in any dispute that goes to arbitration, the validity of Cream's trademarks cannot be challenged or overturned by the arbitrator. This protects Cream's brand and intellectual property.
Furthermore, the document states that franchisees also agree not to bring any claim asserting that any of the Marks are generic or otherwise invalid. This reinforces the protection of Cream's trademarks and prevents franchisees from challenging their validity in any legal proceeding.