What federal law governs matters relating to arbitration under the Mrcool franchise agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
In connection with binding arbitration, Franchisor and Franchisee further agree that:
- (a) All matters relating to arbitration, will be governed by the United States Federal Arbitration Act, except as expressly or otherwise set forth in this Agreement;
- (b) The arbitration hearing shall be conducted within 180 days of the demand for arbitration;
- (c) The arbitrator shall render written findings of fact and conclusions of law;
- (d) Except as may be otherwise required and/or prohibited by this Agreement including, but not limited to Articles 18.I., 18.J., 18.N, 18.O., 18.R., 18.T., and 18.X. of this Agreement, the arbitrator has the right to award or include in his or her award any relief that he or she determines to be proper, including monetary damages, interest on unpaid sums, specific performance, injunctive relief, attorneys' fees, and costs and expenses as allowable under this Agreement. Notwithstanding the foregoing, under no circumstance shall the Arbitrator be authorized to award or declare the Licensed Marks to be generic or invalid;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool FDD, the United States Federal Arbitration Act governs all matters relating to arbitration, except as expressly set forth in the franchise agreement. This means that while the Mrcool franchise agreement itself outlines specific procedures and rules for arbitration, the Federal Arbitration Act provides the overarching legal framework.
This clause ensures that the arbitration process adheres to federal standards and guidelines, offering a degree of consistency and predictability. However, prospective Mrcool franchisees should carefully review the specific arbitration terms within the franchise agreement to understand how they might deviate from or supplement the Federal Arbitration Act.
For instance, the Mrcool franchise agreement dictates that the arbitration hearing must be conducted within 180 days of the demand for arbitration and that the arbitrator must provide written findings of fact and conclusions of law. It also specifies the types of relief the arbitrator can award, such as monetary damages and attorney's fees, while prohibiting the arbitrator from declaring the Licensed Marks to be generic or invalid. Understanding these details is crucial for any franchisee considering entering into an agreement with Mrcool.