What is the scope of the arbitrator's findings 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 findings are limited to the specific dispute outlined in the written demand for arbitration and the response to that demand. The arbitrator cannot expand beyond the issues presented in these documents. This means a Face Foundrie franchisee must clearly and accurately define the scope of their claim in the initial demand to ensure it falls within the arbitrator's purview.
The arbitrator for Face Foundrie is further restricted from awarding relief not specifically requested by the parties at the start of the arbitration hearing. They also cannot declare any of Face Foundrie's marks generic or otherwise invalid. Punitive, exemplary, or multiple damages are generally prohibited, unless expressly provided for in the agreement. However, the arbitrator does have the authority to order specific performance of the agreement, but must provide a reasoned explanation for their award.
Furthermore, the arbitrator must adhere to any time limitations for bringing claims as defined by applicable law or the franchise agreement, whichever expires sooner. Face Foundrie franchisees are required to submit any compulsory counterclaims within the same proceeding as the original claim, or risk forfeiting them. Settlement discussions or offers made by either party are not to be considered by the arbitrator. These stipulations ensure that the arbitration process remains focused, fair, and respects the contractual limitations agreed upon by both Face Foundrie and the franchisee.