Can arbitration proceedings between Anago and the franchisee be consolidated with any other arbitration proceeding?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Subfranchisor agree that arbitration will be conducted on an individual basis and that an arbitration proceeding between Franchisor and Franchisor's affiliates, or Franchisor and their respective shareholders, officers, directors, agents, and employees, on the one hand, and Subfranchisor (or Subfranchisor's owners, guarantors, affiliates, and employees), on the other hand, may not be: (i) conducted on a class-wide basis, (ii) commenced, conducted or consolidated with any other arbitration proceeding, or (iii) brought on Subfranchisor's behalf by any association or agent. Notwithstanding the foregoing, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute, controversy or claim that otherwise would be subject to arbitration under this Section, then all parties agree that this arbitration clause shall not apply to that dispute, controversy or claim and that such dispute, controversy or claim shall be resolved in a judicial proceeding in accordance with the dispute resolution provisions of the Agreements.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, arbitration proceedings between Anago and a subfranchisee cannot be consolidated with other arbitration proceedings. Anago and the subfranchisee agree that arbitration will be conducted on an individual basis.
Specifically, an arbitration proceeding between Anago and its affiliates, shareholders, officers, directors, agents, and employees, and the subfranchisee (or the subfranchisee's owners, guarantors, affiliates, and employees) cannot be conducted on a class-wide basis, commenced, conducted, or consolidated with any other arbitration proceeding, or brought on the subfranchisee's behalf by any association or agent.
However, there is an exception to this rule. If any court or arbitrator determines that any part of this restriction is unenforceable with respect to a dispute that would otherwise be subject to arbitration, then the arbitration clause will not apply to that specific dispute. In such cases, the dispute will be resolved in a judicial proceeding according to the dispute resolution provisions of the agreements.