What is the deadline for appealing a final arbitration award in a Stretch Zone dispute?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If any party to arbitration wishes to appeal any final award (there will be no appeal of interim awards or other interim relief), the party may appeal, within 30 days of the final award, to a 3-arbitrator panel appointed by the same organization that conducted the arbitration.
The issues on appeal will be limited to the proper application of the law to the facts found at the arbitration hearing and will not include any trial de novo or other fact-finding function.
The party requesting the appeal must pay all expenses charged by the arbitration appeal panel and/or arbitration organization in the appeal and must post any bond deemed appropriate by the arbitration organization or arbitration appeal panel.
In addition, a party requesting appeal that does not prevail on the appeal will pay the attorneys' fees and other costs that the other party incurred in responding to the appeal.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, any party wishing to appeal a final arbitration award has 30 days from the issuance of the final award to do so. This appeal is made to a 3-arbitrator panel appointed by the same organization that conducted the initial arbitration. It is important to note that this appeal process only applies to final awards; interim awards or other forms of interim relief cannot be appealed.
The appeal is limited to reviewing the proper application of the law to the facts that were established during the initial arbitration hearing. The appeal will not include a new trial or any additional fact-finding. This means the appellate panel will not re-examine the evidence or hear new testimony but will instead focus on whether the arbitrator correctly interpreted and applied the relevant laws.
The financial responsibility for pursuing an appeal falls on the appealing party. They must cover all expenses charged by the arbitration appeal panel and/or the arbitration organization, including posting any bond deemed necessary. Furthermore, if the appealing party does not win the appeal, they will be responsible for paying the attorneys' fees and other costs incurred by the opposing party in responding to the appeal. This provision could create a significant financial risk for a franchisee considering an appeal.