Does a request for arbitration stay the termination of the Dryject Franchise 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, a request for arbitration does not postpone or cancel the termination of the Franchise Agreement. Dryject can proceed with the termination, regardless of any pending arbitration.
This means that if Dryject decides to terminate the agreement, the termination takes effect immediately, even if the franchisee has initiated arbitration to dispute the termination. The franchisee must still cease operations and adhere to the termination terms while the arbitration process unfolds.
This clause favors Dryject, as it allows them to enforce a termination decision without waiting for the outcome of arbitration. A prospective franchisee should carefully consider this provision and seek legal counsel to understand their rights and obligations in the event of a termination dispute. It is important to note that the arbitrator cannot suspend any terms of the agreement.