What relief can an arbitrator award in a dispute involving a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 19.1, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 19.1, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with Section 19.1.D. (Excepted Disputes).
- C. Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that
the arbitrator may not declare any Mark generic or otherwise invalid or, except as expressly provided in Section 19.1.F. (Waiver of Punitive Damages), award any special, consequential, exemplary, or punitive damages against either party (we and you hereby waiving to the fullest extent permitted by law, except as expressly provided in Section 19.1.F. below, any right to or claim for any special, consequential, exemplary, or punitive damages against the other).
- D. Excepted Disputes. The following disputes will not be resolved through arbitration unless we consent to arbitration: (i) disputes that arise under or are related to the Lanham Act, as now or later amended;
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, in disputes subject to arbitration, the arbitrator has broad authority to award relief. This includes any relief the arbitrator deems proper, such as money damages with interest on unpaid amounts from the date they were due, specific performance, injunctive relief, and attorneys' fees and costs.
However, there are limitations. The arbitrator cannot declare any of Moe's Southwest Grill's marks generic or otherwise invalid. Additionally, the arbitrator generally cannot award special, consequential, exemplary, or punitive damages against either party. Both Moe's Southwest Grill and the franchisee waive any right to claim such damages, except as expressly provided in Section 19.1.F, which discusses the waiver of punitive damages.
The decision and award made by the arbitrator will be considered final and binding on all parties involved, regarding any claims, counterclaims, issues, or accountings presented. A judgment on the award, including any partial, temporary, or interim award, can be entered in any court with competent jurisdiction. The arbitrator can also award interest from the date damages were incurred for breach or other violation of the Franchise Agreement, and from the date of the award until it is paid in full. The interest rate will be fixed by the arbitrator but will not be less than 2.5% per annum above the Citibank Preference Rate quoted for the corresponding periods, as reported in The Wall Street Journal, or the maximum rate permitted by applicable law, whichever is less.