Is the arbitrator's decision binding on all parties in a Moes Southwest Grill franchise dispute?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Binding Decision.
The decision and award of the arbitrator will be final, conclusive, and binding on all parties regarding any claims, counterclaims, issues, or accountings presented or pled to the arbitrator, and judgment on the award, including any partial, temporary or interim award, may be entered in any court of competent jurisdiction.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the arbitrator's decision is binding on all parties involved in a dispute. Specifically, the FDD states that the decision and award made by the arbitrator will be considered final and conclusive for all parties concerning any claims, counterclaims or accounting issues presented during arbitration.
This means that once the arbitrator makes a decision, both Moe's Southwest Grill and the franchisee are legally obligated to abide by it. The FDD also clarifies that a judgment on the arbitrator's award, which may include partial, temporary, or interim awards, can be entered in any court that has the legal authority to enforce it. This reinforces the binding nature of the arbitration decision and provides a mechanism for ensuring compliance.
It is important to note that this clause applies to disputes related to the Franchise Agreement, the relationship between Moe's Southwest Grill and the franchisee, or the franchisee's business. However, certain types of disputes, such as those arising under the Lanham Act or related to intellectual property, may not be subject to arbitration unless Moe's Southwest Grill consents. Additionally, while the arbitrator can award interest on damages, they cannot declare any Mark generic or award special, consequential, exemplary, or punitive damages against either party unless expressly provided.