Are the arbitrator's awards final and binding for Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ent.
E. RIGHTS OF PARTIES ARE CUMULATIVE.
Our and your rights under this Agreement are cumulative, and our or your exercise or enforcement of any right or remedy under this Agreement will not preclude our or your exercise or enforcement of any other right or remedy which we or you are entitled by law to enforce.
F. ARBITRATION.
We and you agree that all controversies, disputes, or claims between us or any of our affiliates, and our and their respective owners, officers, directors, agents, and employees, on the one hand, and you and your owners, guarantors, affiliates, and employees, on the other hand, arising out of or related to: (1) this Agreement or any other agreement between you (or any of your owners) and us (or any of our affiliates); (2) our relationship with you; (3) the scope or validity of this Agreement or any other agreement between you (or any of your owners) and us (or any of our affiliates) or any provision of any of such agreements (including the validity and scope of this arbitration provision, which is to be determined by an arbitrator, not a court); or (4) any System Standard, must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association (the "AAA"). The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the AAA's then-current Commercial Arbitration Rules. All proceedings will be conducted at a suitable location chosen by the arbitrator that is within 50 miles of our or, as applicable, our successor's or assign's then-current principal place of business (currently, Columbus, Ohio). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). The interim and final awards of the arbitrator shall be final and binding upon each party, and judgment upon the arbitrator's awards may be entered in any court of competent jurisdiction.
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, any disputes between Cream and the franchisee must be submitted to binding arbitration through the American Arbitration Association (AAA). The arbitration will be conducted by a single arbitrator in accordance with the AAA's Commercial Arbitration Rules. The location for these proceedings will be within 50 miles of Cream's principal place of business, which is currently in Columbus, Ohio. The Federal Arbitration Act governs all arbitration matters.
The arbitrator's decisions are final and legally binding for both Cream and the franchisee. These decisions can be enforced in any court with the appropriate jurisdiction. The arbitrator has broad authority to award various forms of relief, including monetary damages, interest, legal fees, specific performance, and injunctive relief. However, the arbitrator cannot invalidate Cream's trademarks or award punitive damages against either party, as both Cream and the franchisee waive any right to claim such damages to the fullest extent permitted by law.
In any arbitration or legal action related to compliance with the arbitration agreement, the prevailing party is entitled to recover costs and expenses, including attorney's fees. This encourages both parties to adhere to the arbitration process and ensures that the responsible party bears the financial burden of resolving disputes. This clause emphasizes the importance of arbitration as the primary means of resolving conflicts and provides a clear framework for the process, including the finality of the arbitrator's decisions and the allocation of costs.