What happens to claims that are not submitted or filed in the same proceeding as the claim to which it relates in Aira Fitness arbitration?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you further agree that, in connection with any arbitration proceeding, each party must submit or file any claim which would constitute a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding will be barred. The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us. We reserve the right, but have no obligation, to advance your share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so will not be deemed to have waived or relinquished our right to seek the recovery of those costs in accordance with Section 13.D. Except as may be required by law, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration under this Section 13 without the prior written consent of both parties. The provisions of this Section are intended to benefit and bind certain third-party non- signatories and will continue in full force and effect subsequent
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a party fails to submit or file a claim that constitutes a compulsory counterclaim, as defined by Rule 13 of the Federal Rules of Civil Procedure, within the same arbitration proceeding as the original claim, that claim will be barred. This means the arbitrator will not consider the claim if it's brought up in a separate proceeding.
This provision is significant for prospective Aira Fitness franchisees because it emphasizes the importance of raising all related claims within a single arbitration. Failing to do so could result in the loss of the ability to pursue those claims in the future. It also highlights the need for franchisees to be aware of what constitutes a compulsory counterclaim under the Federal Rules of Civil Procedure.
Furthermore, the FDD states that the arbitrator is not allowed to consider any settlement discussions or offers made by either party. This encourages parties to present their cases based on the merits, without influence from prior settlement attempts. Aira Fitness also reserves the right to advance a franchisee's share of arbitration costs without waiving their right to seek recovery of those costs later.
Finally, the document specifies that neither party nor the arbitrator can disclose the existence, content, or results of any arbitration without the written consent of both parties, unless required by law. This confidentiality provision aims to protect the privacy of the arbitration process and its outcomes.