What are the limitations on the issues that can be appealed to a 3-arbitrator panel regarding a Stretch Zone arbitration?
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.
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 Stretch Zone's 2025 Franchise Disclosure Document, if a party wishes to appeal a final arbitration award, they may appeal to a 3-arbitrator panel within 30 days of the final award. However, the appeal is limited in scope.
The issues that can be appealed are restricted to the proper application of the law to the facts that were established during the initial arbitration hearing. This means the appeal will focus on whether the arbitrator correctly interpreted and applied the relevant laws to the evidence presented.
The appeal will not include a de novo trial, which is a completely new trial, or any other fact-finding function. The appeal panel will not re-examine the evidence or attempt to determine the facts of the case independently. The panel is bound by the facts as they were determined in the original arbitration hearing. This is a significant limitation, as it prevents a party from introducing new evidence or arguing that the original arbitrator made incorrect factual findings.