Are All States M.E.D. franchisees required to bring claims individually, and not as part of a class action against the franchisor?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees are required to bring claims individually. The franchise agreement states that franchisees cannot join claims with other individuals or entities, nor can they participate in a class action against All States M.E.D.

This class action waiver means that an All States M.E.D. franchisee cannot participate in a lawsuit against the franchisor as part of a group. Instead, each franchisee must pursue their legal claims individually. This could potentially increase the legal costs and risks for a franchisee who believes they have been wronged by All States M.E.D., as they would be solely responsible for all legal expenses.

It is common for franchise agreements to include clauses that prevent franchisees from participating in class action lawsuits. This is because class action lawsuits can be costly and time-consuming for franchisors. However, franchisees should carefully consider the implications of a class action waiver before signing a franchise agreement.

The FDD also specifies dispute resolution procedures, including mediation and arbitration, that franchisees must follow before pursuing legal claims. These procedures are designed to resolve disputes outside of court, which can save both the franchisee and All States M.E.D. time and money. However, the class action waiver remains in effect even if these alternative dispute resolution methods are unsuccessful.