What remedies can the arbitrator award in a Learningrx franchise 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 or awards that are barred by the "Limitation of Claims" Section of this Agreement. The award and decision of the arbitrator will be conclusive and binding upon all parties and their respective owners, managers, employees, and agents. Judgment
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, an arbitrator in a dispute has the authority to award various forms of relief. This includes monetary damages, with interest applied to unpaid amounts from their due date. Additionally, the arbitrator can order specific performance, which compels a party to fulfill their contractual obligations, and grant injunctive relief, which is a court order that requires a party to do or refrain from doing specific acts. The arbitrator can also award attorneys' fees and costs to the prevailing party.
However, there are limitations to the arbitrator's power. The agreement explicitly states that the arbitrator cannot award any party more than $50,000 in damages, including both costs and attorneys' fees. Furthermore, the arbitrator is not allowed to make any awards that are barred by the "Limitation of Claims" section of the Learningrx franchise agreement. This means that certain types of damages or claims may be excluded from the arbitrator's consideration based on other provisions within the agreement.
It is also important to note that the arbitrator's authority is confined to interpreting the existing agreement; they cannot amend or modify the terms of the agreement. The arbitrator's decision must adhere to the plain meaning of the agreement. The arbitrator is expected to issue an award within 90 days after the arbitration hearing begins, unless the parties involved agree to a different timeline. This dispute resolution clause remains in effect even after the termination or expiration of the Learningrx Franchise Agreement.
For prospective Learningrx franchisees, this means that while arbitration offers a route to resolving disputes, the potential financial recovery is capped at $50,000, including legal costs. Franchisees should carefully review the "Limitation of Claims" section to understand what types of claims might be excluded from arbitration. The arbitrator's decision is binding and enforceable in court, so it is crucial to present a strong case within these constraints.