In All Team arbitration, are parties entitled to consolidate arbitration proceedings with third parties?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator will apply the provisions of any applicable statute of limitations. In connection with any arbitration proceeding, ATFC and USER will submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any of these compulsory claims which are not submitted or filed in the same proceeding in which they relate will be barred. This provision will continue in full force and effect subsequent to and notwithstanding the Transfer, or the termination or expiration of the term of this Agreement. The arbitration will be conducted on an individual, not a class-wide basis. None of the parties to the arbitration will be entitled to consolidation of the arbitration proceedings with the proceedings of any third party, nor will the arbitrator or any court be empowered to order a consolidation of proceedings with any third party.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, neither the parties involved in arbitration nor the arbitrator or any court have the right to consolidate arbitration proceedings with those of any third party. This means that any disputes will be handled on an individual basis, specifically between All Team and the franchisee, without the involvement of or consolidation with other related or unrelated cases.
This policy ensures that each dispute is addressed separately, which may affect the time and cost involved in resolving conflicts. Franchisees cannot join their arbitration with other franchisees or third parties who may have similar grievances against All Team. This could potentially increase the financial burden on individual franchisees, as they must bear the costs of arbitration independently.
This clause is designed to keep each arbitration distinct and focused solely on the issues between the individual franchisee and All Team. Prospective franchisees should be aware of this limitation, as it restricts their ability to collectively address common issues through a consolidated legal process. It is important for potential franchisees to consider the implications of this clause, especially if they anticipate the possibility of disputes involving multiple parties.