In Dryject arbitration, can the arbitrator extend any terms of the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) In proceeding with Arbitration and in making determinations hereunder, the Arbitrator shall not extend, modify or suspend any terms of this Agreement or the reasonable standards of business performance and operation established by Us in good faith. Notice of or request to or demand for arbitration shall not stay, postpone or rescind the effectiveness of any termination of this Agreement. In the event that either Party fails to appear at any properly noticed arbitration proceeding, an award may be entered against such Party notwithstanding said failure to appear.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, the arbitrator is not permitted to extend, modify, or suspend any terms of the franchise agreement. This restriction ensures that the arbitrator's role is limited to interpreting the existing agreement and resolving disputes within its established framework.
This provision protects Dryject by preventing an arbitrator from imposing new obligations or altering the fundamental terms of the franchise agreement. It also maintains consistency across all franchise agreements, as the terms cannot be changed on a case-by-case basis through arbitration.
For a prospective franchisee, this means that the terms agreed upon in the franchise agreement are binding and cannot be altered by an arbitrator. Franchisees should carefully review and understand all terms before signing the agreement, as the arbitrator's decisions will be based solely on the existing contract. This clause promotes predictability and stability in the franchise relationship, as neither party can seek to change the agreement through arbitration.