In the event of a dispute regarding the validity and scope of the arbitration provision within the Anago franchise agreement, who is responsible for determining its validity and scope?

According to Anago's 2025 Franchise Disclosure Document, any disputes regarding the validity and scope of the arbitration provision within the franchise agreement will be determined by an arbitrator, not a court. This is according to Section 13.1 of the franchise agreement.

This means that if a franchisee and Anago have a disagreement about whether a particular issue should be subject to arbitration, or about the breadth of the arbitration clause itself, the decision will be made by a neutral third-party arbitrator. This is a common practice in franchising, as arbitration is often seen as a faster and less expensive way to resolve disputes than going to court.

Prospective Anago franchisees should understand that they are waiving their right to have a judge or jury decide these specific issues related to arbitration. Instead, they are agreeing to have an arbitrator make those determinations. Franchisees should carefully consider the implications of agreeing to arbitration, including the potential costs and benefits, and how it might affect their ability to pursue legal claims against the franchisor.