In Crepe De Licious arbitration, can the arbitrator award attorney's fees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
on Association in the United States ("AAA"). The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the AAA's then current rules. All proceedings will be conducted at a suitable location chosen by the arbitrator which is within a five (5) mile radius of Franchisor's then current principal place of business. All matters relating to arbitration will be governed by the United States Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
16.3.1 The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs (as allowable under this Agreement or applicable law), provided that the arbitrator may not declare any Mark generic or otherwise invalid or, as expressly provided in Section 16.10 below, award any punitive, exemplary or multiple damages against either party.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the arbitrator has the authority to award attorney's fees and costs under certain conditions. Specifically, the arbitrator can include in their award any relief deemed proper, including money damages, specific performance, injunctive relief, and attorney's fees and costs, provided it is allowable under the agreement or applicable law. However, the arbitrator cannot declare any mark generic or invalid, or award punitive, exemplary, or multiple damages against either party.
Furthermore, the arbitration decision will dictate that the substantially prevailing party will recover their actual costs and expenses from the other party. This includes arbitrator's fees and expenses, as well as attorney fees and expenses, incurred in connection with the dispute. This provision encourages both parties to present a strong case, as the losing party may be responsible for covering the legal costs of the prevailing party.
In cases where Crepe De Licious pursues legal remedies against a franchisee for breaching the agreement and prevails, the franchisee agrees to pay Crepe De Licious's reasonable attorneys' fees and costs. This clause reinforces the importance of adhering to the franchise agreement and provides Crepe De Licious with a means to recoup legal expenses in the event of a breach by the franchisee.