What instructions will the arbitrator receive regarding substantive law and 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 Face Foundrie's 2025 Franchise Disclosure Document, any appointed arbitrator must possess a minimum of ten years of experience in either franchising or franchise law. The arbitrator is specifically directed to adhere to the substantive law, along with all other stipulations, waivers, and limitations outlined within the Face Foundrie agreement.
The arbitrator's authority is limited; they cannot alter the agreement's terms in any way. All judgments and awards are restricted to the disputes detailed in the written arbitration demand and response. The arbitrator is prohibited from awarding relief not explicitly requested by the parties before the arbitration hearing begins. Additionally, the arbitrator cannot declare any Face Foundrie mark generic or invalid.
Furthermore, the arbitrator is generally barred from awarding punitive, exemplary, or multiple damages against either Face Foundrie or the area developer, except as expressly provided in the agreement. The arbitrator does, however, have the power to enforce specific performance of the agreement, but must provide a reasoned explanation for their award. These instructions ensure that the arbitration process remains focused on the specifics of the agreement and applicable law, without overstepping the bounds of the contract or awarding excessive damages.