Can arbitration between Anago and the Subfranchisor be commenced, conducted, or 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.
Despite Franchisor's and Subfranchisor's agreement to arbitrate, Franchisor and Subfranchisor each have the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction; provided, however, that Franchisor and Subfranchisor must contemporaneously submit our dispute, controversy or claim for arbitration on the merits as provided in this Section.
Subfranchisor and Franchisor agree that, in any arbitration arising as described in this Section, requests for documents shall be limited to documents that are directly relevant to significant issues in the case or to the case's outcome; shall be restricted in terms of time frame, subject matter and persons or entities to which the requests pertain; and shall not include broad phraseology such as "all documents directly or indirectly related to." Subfranchisor and Franchisor further agree that no interrogatories or requests to admit shall be propounded. With respect to any electronic discovery, Subfranchisor and Franchisor agree that:
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, arbitration between Anago and a Subfranchisor must be conducted on an individual basis. An arbitration proceeding between Anago and its affiliates, shareholders, officers, directors, agents, and employees, and the Subfranchisor (or their 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 Subfranchisor's behalf by any association or agent. However, if a court or arbitrator deems any part of this restriction unenforceable, the arbitration clause will not apply, and the dispute will be resolved in a judicial proceeding.
Despite the agreement to arbitrate, both Anago and the Subfranchisor retain the right to seek temporary restraining orders and preliminary injunctive relief from a competent court. However, they must simultaneously submit the dispute for arbitration on the merits.
In any arbitration, document requests are limited to those directly relevant to significant issues or the case's outcome, restricted in time frame, subject matter, and the persons or entities involved. Broad phrasing like "all documents directly or indirectly related to" is not allowed. Interrogatories or requests to admit are also prohibited. For electronic discovery, specific agreements apply.