Can the arbitrator award relief that was not specifically requested by the parties in a Face Foundrie arbitration?
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's authority is limited to the specific disputes outlined in the written demand for arbitration and the response to that demand. The arbitrator cannot award any relief that was not specifically requested by the parties before the arbitration hearing began. This means a Face Foundrie franchisee must clearly state the specific remedies they are seeking at the outset of the arbitration process.
This limitation ensures that the arbitration remains focused on the issues the parties have identified and prevents the arbitrator from introducing new or unexpected remedies. It also means that a Face Foundrie franchisee needs to carefully consider and articulate all potential forms of relief they might seek when initiating or responding to an arbitration demand.
Additionally, the arbitrator cannot declare any of Face Foundrie's marks generic or invalid, and cannot award punitive, exemplary, or multiple damages unless expressly provided for in the agreement. However, the arbitrator does have the power to order specific performance of the agreement, accompanied by a reasoned explanation for the award.