Under what circumstances is the joinder of parties to an arbitration between Aira Fitness and a developer permitted?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) The foregoing notwithstanding, in the event Developer controls, is controlled by, or is in active concert with another developer of Franchisor, or there is a guarantor of some or all of Developer's obligations to Franchisor, then the joinder of those parties to any arbitration between Franchisor and Developer shall be permitted, and in all events, the joinder of an owner, director, officer, member, manager, partner or other representative or agent of Franchisor or Developer shall be permitted.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, there are specific circumstances under which the joinder of parties is permitted in an arbitration between Aira Fitness and a developer. Generally, Aira Fitness and the developer agree that arbitration will be conducted on an individual basis, not on a joint, collective, or class-wide basis. An arbitration proceeding between Aira Fitness and its affiliates, and the developer and its stakeholders, cannot be consolidated or joined with any other arbitration proceeding between Aira Fitness and any other person or entity. Neither party can start arbitration with a third party against the other or join with a third party in any arbitration involving Aira Fitness and the developer, nor can they consolidate the arbitration with another arbitration or attempt to certify a class or participate in a class action against the other.
However, an exception exists. If the developer controls, is controlled by, or is in active concert with another developer of Aira Fitness, the joinder of those parties to any arbitration between Aira Fitness and the developer is allowed. Additionally, the joinder of a guarantor of some or all of the developer's obligations to Aira Fitness is also permitted. Furthermore, the joinder of an owner, director, officer, member, manager, partner, or other representative or agent of either Aira Fitness or the developer is permitted in any arbitration between the two parties.
This clause ensures that while Aira Fitness prefers individual arbitration proceedings, it recognizes situations where related parties have a significant connection to the dispute and should be included in the arbitration for a comprehensive resolution. This can be beneficial for Aira Fitness as it allows for a more complete resolution of disputes involving multiple related entities, while also protecting against the complexities and risks associated with class action or consolidated arbitrations.