Is the arbitrator allowed to modify the terms of the Face Foundrie agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator appointed must have at least ten (10) years' experience in franchising or franchise law, and the arbitrator will be instructed that he or she must follow the substantive law and the other requirements, waivers, and limitations of this Agreement. The arbitrator will have no authority to add, delete, or modify in any manner the terms and provisions of this Agreement. All findings, judgments, decisions, and awards of the arbitrator will be limited to the dispute or controversy set forth in the written demand for arbitration and response to that demand. The arbitrator may not award any relief that was not specifically requested by the parties before the start of the arbitration hearing, and the arbitrator may not declare any Mark generic or otherwise invalid or, except as expressly provided in this Agreement below, award any punitive, exemplary or multiple damages against either party (Franchisor and Area Developer hereby waiving to the fullest extent permitted by law, except as expressly provided in this Agreement below, any right to or claim for any punitive, exemplary or multiple damages against the other). The arbitrator will have the right to award or include in any award the specific performance of this Agreement, but will be required to file a reasoned brief with his or her award.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the arbitrator does not have the authority to alter the terms of the agreement. The selected arbitrator must possess a minimum of ten years of experience in franchising or franchise law and is required to adhere to the substantive law, requirements, waivers, and limitations outlined in the agreement.
Specifically, the arbitrator is prohibited from adding to, deleting from, or modifying the terms and provisions of the agreement in any way. The arbitrator's findings, judgments, decisions, and awards are restricted to the dispute detailed in the written demand for arbitration and the corresponding response.
Furthermore, the arbitrator cannot grant any relief not explicitly requested by the parties before the arbitration hearing begins. The arbitrator is also barred from declaring any mark generic or invalid and, except as expressly provided in the agreement, cannot award punitive, exemplary, or multiple damages against either party. However, the arbitrator retains the right to enforce specific performance of the agreement and must provide a reasoned brief with their award.