Can the arbitrator assess punitive damages in a Crepe De Licious arbitration?
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 most arbitration cases, the arbitrator does not have the authority to award punitive, exemplary, or multiple damages against either party. However, this limitation does not apply to controversies, disputes, or claims related to or based on improper use of the Marks or Confidential Information.
Specifically, the FDD states that the arbitrator has the right to award relief, including money damages, specific performance, injunctive relief, and attorneys' fees and costs, but cannot declare any Mark generic or otherwise invalid or award punitive damages against either party, except for claims excluded from mediation and arbitration.
This means that while a Crepe De Licious franchisee can seek compensation for actual damages, the ability to claim punitive damages is restricted to specific cases involving misuse of trademarks or confidential information. This is a significant limitation for franchisees who may experience other forms of damages due to the franchisor's actions, as it restricts the potential financial recovery in arbitration.