Can the arbitrator consider settlement discussions or offers made by either party during an Anago arbitration?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you further agree that, in any arbitration proceeding, each party must 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. Any claim which is not submitted or filed as required will be forever barred. The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, during arbitration proceedings, the arbitrator is not allowed to consider any settlement discussions or offers that either Anago or the franchisee might have made. This means that any attempts to resolve the dispute through negotiation before arbitration will not be taken into account during the arbitration process itself.
This provision ensures that the arbitrator's decision is based solely on the merits of the case presented during the arbitration hearing, without being influenced by prior settlement attempts. It encourages both parties to present their strongest arguments and evidence during the arbitration, as previous offers or discussions are irrelevant to the final decision.
For a prospective Anago franchisee, this means that it is important to build a strong case for arbitration, as the arbitrator will not consider any prior settlement negotiations. It also suggests that franchisees should carefully document all communications and evidence related to the dispute, as this information will be crucial in the arbitration process. This clause promotes a focus on the formal arbitration process rather than relying on pre-arbitration discussions to influence the outcome.