Can the arbitrator award attorney's fees in a Healthsource Chiropractic arbitration?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Awards and Decisions. The arbitrator shall have the right to award or include in his award any relief that he or she deems proper in the circumstances, including without limitation, money damages (with interest on unpaid amounts from date due), specific performance, injunctive relief (including permanent, temporary, and preliminary injunctive relief), attorneys' fees, and costs. The award and decision of the arbitrator shall be conclusive and binding on all parties to this agreement, and judgment on the award may be entered in any court of competent jurisdiction, and each such party waives any right to contest the validity or enforceability of such award.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the arbitrator has the authority to award attorney's fees and costs to the prevailing party in an arbitration. The arbitrator can include in the award any relief deemed proper, including money damages with interest, specific performance, injunctive relief, attorney's fees, and costs.
This means that if a Healthsource Chiropractic franchisee is successful in an arbitration against the franchisor, the arbitrator has the discretion to order Healthsource Chiropractic to pay the franchisee's attorney's fees and other associated costs. Conversely, if Healthsource Chiropractic prevails, the arbitrator can order the franchisee to cover Healthsource Chiropractic's legal expenses.
This provision can significantly impact the financial risks associated with arbitration. The potential to recover attorney's fees could make it more feasible for a franchisee to pursue a legitimate claim, while the risk of paying the franchisor's legal fees could deter frivolous claims. Prospective franchisees should carefully consider this clause and its potential financial implications when evaluating the franchise agreement.