Can an All County arbitrator certify a class or 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 take place in the city closest to where our headquarters is located at the time of the dispute.
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 any dispute resolution is explicitly prohibited from certifying a class or consolidated action. The franchise agreement mandates that any arbitration must be conducted on an individual basis, preventing the arbitrator from combining claims or proceedings with those involving third parties. This means that each franchisee must pursue their claims independently, without the ability to join forces in a class action.
This restriction has significant implications for prospective All County franchisees. It means that if a franchisee has a dispute with All County, they cannot band together with other franchisees who have similar grievances to pursue a joint legal action. The costs and resources required to pursue a claim individually could be substantial, making it financially challenging for some franchisees to seek redress. This limitation is designed to protect All County from large-scale, consolidated legal challenges.
However, the FDD also states that if a court or arbitrator deems the prohibition on class action certification unenforceable, the agreement to arbitrate the dispute becomes null and void. In such a case, the parties would be required to submit all claims to the jurisdiction of the courts. This provision introduces a degree of uncertainty, as the enforceability of the class action waiver could be subject to legal challenges and judicial interpretation. Franchisees should be aware of this clause and its potential impact on their dispute resolution options.
Overall, the arbitration terms outlined in the All County franchise agreement favor the franchisor by limiting the franchisees' ability to pursue collective legal action. Prospective franchisees should carefully consider this provision and its potential implications for their rights and remedies in the event of a dispute with All County.