What authority does the arbitrator have regarding damages in a Crepe De Licious arbitration?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the arbitrator in a dispute is authorized to assess actual damages sustained due to a breach or wrongful termination of the agreement. However, the arbitrator does not have the authority to amend or modify the terms of the agreement, nor can they assess punitive damages. This means that while a franchisee can seek compensation for direct financial losses resulting from a breach, they cannot pursue remedies that alter the original contract terms or seek additional penalties beyond those actual damages.

This limitation on the arbitrator's authority has significant implications for prospective Crepe De Licious franchisees. It clarifies the scope of potential recovery in case of disputes, focusing it strictly on demonstrable financial harm. Franchisees should be aware that they cannot use arbitration to renegotiate contract terms or to claim punitive damages, which are sometimes awarded in court cases to punish the breaching party for egregious behavior.

This arbitration process is binding, meaning that the decision made by the arbitrator must be followed by both parties. The arbitrator, and not any court or agency, has the exclusive authority to resolve disputes regarding the interpretation, applicability, enforceability, or formation of the agreement, except for claims excluded from mediation and arbitration. This includes any claim that all or part of the agreement is void or voidable. The arbitrator's decision must be issued within 10 days after the conclusion of the hearing, with a written explanation of the basis for the decision.