Does the jury trial waiver in the Anago franchise agreement apply to claims relating to the negotiation of the agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES WILLINGLY WAIVE THE RIGHT EITHER PARTY MAY HAVE TO A TRIAL BY JURY FOR ANY CLAIMS MADE BETWEEN THEM, INCLUDING CLAIMS RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE NEGOTIATION OF THIS AGREEMENT, OR THE BUSINESS RELATIONSHIP RELATING TO THIS AGREEMENT, WHETHER NOW EXISTING OR LATER ARISING IN THE FUTURE, INCLUDING ALL CLAIMS, DEFENSES, COUNTERCLAIMS, CROSSCLAIMS, THIRD PARTY CLAIMS AND INTERVENOR'S CLAIMS RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE BUSINESS RELATIONSHIP, OR THE SALE, NEGOTIATION, EXECUTION, OR PERFORMANCE OF THE TRANSACTIONS TO WHICH THIS AGREEMENT RELATES.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of the right to a jury trial. This waiver explicitly applies to claims relating directly or indirectly to the franchise agreement, including claims related to the negotiation of the agreement. This means that any disputes arising from the negotiation process itself, or related to the agreement, will not be resolved through a jury trial.
This jury trial waiver extends to all claims made between the parties, whether existing now or arising in the future. It encompasses all claims, defenses, counterclaims, crossclaims, third-party claims, and intervenor's claims that relate directly or indirectly to the agreement, the business relationship, or the sale, negotiation, execution, or performance of the transactions to which the agreement relates. This broad scope indicates that Anago intends to resolve disputes through alternative means, such as arbitration or bench trials, where a judge makes the decision.
For a prospective Anago franchisee, this means they are giving up their right to have a jury decide any disputes covered by the waiver. Jury trial waivers are relatively common in franchise agreements, as they can offer a more predictable and potentially faster resolution process compared to jury trials. However, franchisees should carefully consider the implications of waiving this right, as it may affect their ability to present their case to a jury of their peers. It is advisable to seek legal counsel to fully understand the ramifications of this waiver before signing the franchise agreement.