What standards is the arbitrator bound to apply in Southern Steer arbitration proceedings?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
THE ARBITRATOR WILL AGREE TO FOLLOW AND APPLY THE EXPRESS PROVISIONS OF THIS AGREEMENT IN DETERMINING THE ARBITRATION AWARD.
THE ARBITRATOR WILL NOT EXTEND OR MODIFY OR SUSPEND ANY OF THE TERMS OF THE AGREEMENT OR THE REASONABLE STANDARDS OF BUSINESS PERFORMANCE AND OPERATION ESTABLISHED BY FRANCHISOR.
THE ARBITRATOR SHALL BE BOUND TO APPLY THE APPLICABLE LAW AND SHALL NOT RULE INCONSISTENTLY WITH APPLICABLE LAW.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the arbitrator is bound to specific standards when resolving disputes. The arbitrator must adhere to the express provisions outlined in the franchise agreement. This means the arbitrator's decisions must align with the terms and conditions both Southern Steer and the franchisee initially agreed upon.
Furthermore, the arbitrator cannot extend, modify, or suspend any terms of the agreement. This restriction ensures that the arbitrator's role is to interpret and apply the existing agreement, not to create new terms or alter the balance of obligations between Southern Steer and the franchisee. The arbitrator is also expected to uphold the reasonable standards of business performance and operation established by Southern Steer, ensuring consistent operational benchmarks are maintained.
In addition to adhering to the franchise agreement, the arbitrator must apply the applicable law and cannot make rulings that contradict it. This requirement ensures that the arbitration process respects the legal framework governing franchise relationships. Overall, these standards provide a structured framework for arbitration, balancing the need for fair dispute resolution with the importance of upholding the integrity of the franchise agreement and relevant legal standards.