During arbitration involving Dryject, can the arbitrator modify any terms of the Franchise Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
nsistent with the requirements of the Wisconsin Fair Dealership Law (which, among other things, grants You the right, in most circumstances, to 90 days prior written notice to termination and 60 days within which to remedy any claim deficiencies), the termination provision will be superseded by the requirements of the Wisconsin Fair Dealership Law and will have no force or effect."
"To the extent that the provisions regarding termination described in the Franchise Agreement regarding repurchase of inventory are inconsistent with the requirements of § 135.045 of the Wisconsin Fair Dealership Law, the abovementioned provisions will be superseded by the Law's requirements, which states that if DRYJECT MANAGEMENT, LLC, at the option of DRYJECT MANAGEMENT, LLC, repurchases inventory which was sold by DRYJECT MANAGEMENT, LLC to
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the franchise agreement can be modified under certain circumstances during arbitration. Specifically, state-specific riders to the franchise agreement, such as those for California and Minnesota, can supersede conflicting provisions of the standard agreement. For example, the Minnesota rider includes stipulations that prevent Dryject from requiring litigation outside of Minnesota or requiring franchisees to waive jury trials. These riders take precedence over the original agreement terms.
Additionally, the Dryject Franchise Agreement states that to the extent that the provisions regarding termination described in the Franchise Agreement regarding repurchase of inventory are inconsistent with the requirements of § 135.045 of the Wisconsin Fair Dealership Law, the abovementioned provisions will be superseded by the Law's requirements. Covenants not to compete during the term of and upon termination or expiration of a Franchise Agreement are enforceable only under certain conditions according to Wisconsin Law.
In general, the arbitrator is expected to apply the Federal Rules of Civil Procedure and the Federal Rules of Evidence, aiming for a streamlined arbitration process. However, the specific terms of the franchise agreement, as modified by state laws and riders, will govern the proceedings. This means that while the arbitrator must adhere to legal standards, the actual agreement, as altered by applicable state laws, dictates the final resolution. Therefore, while the arbitrator does not have explicit authority to unilaterally modify the agreement, the agreement itself can be altered by state laws which the arbitrator must consider.