Can a 7 Brew arbitration proceeding be consolidated or joined with another arbitration proceeding?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you agree that arbitration will be conducted on an individual basis and not in a class, consolidated, or representative action, that only we (and our affiliates and our and their respective owners, officers, directors, agents, and employees, as applicable) and you (and your affiliates and your and their respective owners, officers, and directors, as applicable) may be the parties to any arbitration proceeding described in this Section, and that no such arbitration proceeding may be consolidated or joined with another arbitration proceeding involving us and/or any other person. Despite the foregoing or anything to the contrary in this Section or Section 21.A, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 21.F, then we and you agree that this arbitration clause will not apply to that dispute, and such dispute will be resolved in a judicial proceeding in accordance with this Section 21 (excluding this Section 21.F).
This Section's provisions are intended to benefit and bind certain third-party nonsignatories and will continue in full force and effect after and notwithstanding expiration or termination of this Agreement.
Despite your and our agreement to arbitrate, each has the right to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction, provided, however, each must contemporaneously submit its dispute for arbitration on the merits as provided in this Section.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, arbitration proceedings are to be conducted on an individual basis. This means that a franchisee cannot participate in a class action, nor can they consolidate their arbitration case with another party. The only parties that can be involved in the arbitration are 7 Brew (including its affiliates, owners, officers, directors, agents, and employees) and the franchisee (including their affiliates, owners, officers, and directors).
This clause is designed to prevent franchisees from joining together to pursue claims against 7 Brew, and vice versa. It ensures that each dispute is handled separately, which can be beneficial for 7 Brew as it avoids the potential for large, consolidated claims. However, it may put individual franchisees at a disadvantage, as they may have to bear the costs of arbitration alone, without the ability to share resources or strategies with other franchisees.
However, there is an exception to this rule. If a court or arbitrator determines that the prohibition on class actions or consolidated arbitration is unenforceable, then the arbitration clause will not apply to that specific dispute. In such cases, the dispute would be resolved in a judicial proceeding. Despite the agreement to arbitrate, both 7 Brew and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief from a court, provided that they also submit the dispute for arbitration on the merits.