After arbitration, is the decision and award determined by such arbitration enforceable for Ledgers?

According to Ledgers' 2025 Franchise Disclosure Document, any decision and award determined by arbitration will be final, binding, and enforceable by any court with the appropriate jurisdiction for both Ledgers and the franchisee. This means that once a dispute is resolved through arbitration, the outcome is legally binding, and either party can seek court enforcement if the other party fails to comply with the arbitrator's decision.

This clause ensures that both Ledgers and its franchisees are held accountable to the arbitration outcome, providing a clear path for resolving disputes. It avoids prolonged legal battles by making the arbitration decision final and enforceable.

However, it's important to note that while the arbitration decision is binding, the specific procedures and rules of the American Arbitration Association (AAA) will govern the arbitration process. Additionally, the franchisee must bring any claims against Ledgers within one year of the occurrence of the facts giving rise to such claims. This limitation of actions could impact a franchisee's ability to pursue a claim if they delay.

Prospective franchisees should understand that while arbitration offers a potentially quicker and less expensive route to dispute resolution, they are waiving their right to a jury trial. The arbitrator's decision is final and enforceable, so it is crucial to present a strong case during arbitration. Franchisees should also be aware of the cost-sharing arrangement for mediation or arbitration, where they bear their own costs, including attorney's fees, while the cost of the mediator or arbitrator is shared equally with Ledgers.