In Crepe De Licious arbitration, can the arbitrator award specific performance?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Crepe De Licious's 2025 Franchise Disclosure Document, in arbitration, the arbitrator has the authority to award specific performance. This means the arbitrator can order a party to fulfill their obligations under the agreement, rather than just awarding monetary damages.
For a prospective Crepe De Licious franchisee, this is a significant point. It means that if Crepe De Licious is found to be in breach of contract, the arbitrator could compel them to take specific actions to remedy the breach, such as providing certain services or support that were promised in the franchise agreement. This can be a more effective remedy than just receiving money, especially if the franchisee's success depends on Crepe De Licious fulfilling its obligations.
However, there are limitations. The arbitrator cannot declare any of Crepe De Licious's marks generic or invalid, and cannot award punitive, exemplary, or multiple damages. The arbitrator's award is also subject to applicable law and the terms of the agreement, meaning that any specific performance order must be within the bounds of what is legally permissible and contractually agreed upon.