In All County arbitration, can the arbitrator certify a consolidated action?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or any other proceeding involving third parties.
If a court or arbitrator determines that this limitation or joinder of or class action certification of claims is unenforceable, then the agreement to arbitrate the dispute will be null and void and the parties must submit all claims to the jurisdiction of the courts, in accordance with Article 25.14.
The arbitrator must follow the law and not disregard the terms of this Agreement.
The arbitrator must have at least five (5) years of significant experience in commercial law.
The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us.
The arbitrator may not under any circumstances (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the arbitrator in an arbitration proceeding does not have the authority to certify a consolidated action. The document explicitly states that any arbitration must be on an individual basis, and neither the parties nor the arbitrator have the power to proceed with any claim as a class action or to consolidate claims with other claims involving third parties.
This restriction on consolidated actions means that each All County franchisee must pursue their claims individually. This can increase the cost and complexity of resolving disputes, as franchisees cannot pool resources or share legal expenses. If a court or arbitrator determines that this limitation on joinder or class action certification is unenforceable, the agreement to arbitrate the dispute becomes null and void, and the parties must submit all claims to the jurisdiction of the courts.
This clause is intended to prevent franchisees from bringing class action lawsuits against All County. While it protects All County from large, consolidated claims, it may also place a greater burden on individual franchisees who have disputes with the company, as they must bear the full cost and effort of pursuing their claims independently in arbitration.