What happens if a party fails to appear at a properly noticed Dryject arbitration proceeding?
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 Dryject's 2025 Franchise Disclosure Document, if either party fails to attend a properly noticed arbitration proceeding, the arbitrator can still issue an award against the non-attending party. This means a franchisee could be liable for damages or required actions even without being present to defend themselves.
This provision underscores the importance of actively participating in any arbitration proceedings. Franchisees should ensure they understand the arbitration process and diligently attend all scheduled hearings. Failure to do so could result in an unfavorable outcome, potentially leading to financial or operational consequences for the Dryject franchise.
It is crucial for prospective Dryject franchisees to fully understand the implications of this clause and to seek legal counsel to clarify their rights and obligations in the event of a dispute. Understanding the dispute resolution process, including arbitration, is a key aspect of evaluating the franchise opportunity and mitigating potential risks.