Does the Mrcool franchise agreement specify that the arbitrator's decision must be in writing?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that in the event that an arbitrator in any arbitration proceeding and/or, a court of competent jurisdiction shall issue an award, judgment, decision and/or order finding, holding and/or declaring Franchisee's breach of this Agreement than Franchisor shall also be entitled to the recovery of all reasonable attorney fees, costs and expenses associated with and/or related to such arbitration and/or litigation. Said fees, costs and expenses shall include, but not be limited to, attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees and filing fees.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
Based on the 2025 Mrcool Franchise Disclosure Document, the excerpts provided do not explicitly state whether the arbitrator's decision must be in writing. However, the agreement does mention the arbitrator issuing an award, judgment, decision, and/or order if the franchisee is found to be in breach of the agreement. This implies some form of documentation will be provided.
In the event of a franchisee breach, Mrcool is entitled to recover reasonable attorney fees, costs, and expenses related to the arbitration or litigation. These expenses include attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees, and filing fees. This suggests a formal process with detailed record-keeping.
While the FDD excerpts do not explicitly require a written decision, prospective franchisees should clarify with Mrcool whether the arbitrator's decision is required to be in writing. This is important for ensuring a clear record of the arbitration outcome and the reasoning behind it, which can be crucial for future legal or business decisions.