factual

In All Team franchise arbitrations, are parties allowed to consolidate arbitration proceedings with those of a third party?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

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, the arbitration proceedings will be conducted on an individual basis, not a class-wide basis. The agreement explicitly states that neither party involved in the arbitration, whether it be All Team or the franchisee, has the right to consolidate their arbitration proceedings with those of any third party.

Furthermore, the document specifies that the arbitrator or any court is not authorized or empowered to order a consolidation of proceedings involving any third party. This clause ensures that each arbitration remains separate and focused solely on the dispute between All Team and the individual franchisee, preventing the entanglement of multiple disputes into a single proceeding.

This policy is relatively common in franchising, as franchisors typically want to avoid complex, multi-party arbitrations. For a prospective All Team franchisee, this means that any dispute they have with the franchisor will be handled individually, without the possibility of joining forces with other franchisees in a consolidated arbitration. This could potentially increase the cost and complexity for a franchisee pursuing a claim, as they will bear the full burden of their legal expenses without the ability to share resources or strategies with other franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.