Does the Learningrx agreement allow for specific performance as a remedy in arbitration?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
for arbitration made hereunder. The parties shall each select one arbitrator and the two selected arbitrators shall select a single arbitrator to hear the matter. The parties' consent to the use of the services of Judicial Arbitration Group, Inc. or its successor or the American Arbitration Association to administer the arbitration. The arbitration shall be conducted in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association. The arbitrator will have the right to award any proper relief, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief and attorneys' fees and costs; provided, however, the Parties expressly agree that the arbitrator may not award any Party more than Fifty Thousand and 00/100 Dollars ($50,000.00) in damages, including costs and attorneys' fees, and provided however, the arbitrator will not be empowered to award, nor will any party be entitled to receive, any damages
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchise agreement does allow for specific performance as a remedy in arbitration. The document states that the arbitrator has the right to award any proper relief, including specific performance. This means that if a franchisee or Learningrx fails to fulfill their obligations under the franchise agreement, the arbitrator can order them to perform those specific obligations.
However, there are limitations to the arbitrator's power. The arbitrator cannot award any party more than $50,000 in damages, including costs and attorneys' fees. Additionally, the arbitrator cannot award any damages or awards that are barred by the "Limitation of Claims" section of the agreement. The arbitrator also does not have the authority to amend or modify the terms of the agreement, and their decision must follow the plain meaning of the agreement.
This clause ensures that disputes can be resolved through arbitration, and the arbitrator has the power to order specific actions to be taken. However, the monetary award is capped, and the arbitrator's decisions are limited by the terms of the agreement. Prospective franchisees should carefully review the "Limitation of Claims" section to understand what types of damages or awards are barred.