Under what conditions can an arbitrator deny requests for electronic discovery related to an Anago franchise dispute?

According to Anago's 2025 Franchise Disclosure Document, an arbitrator has the authority to deny requests for electronic discovery in disputes between Anago and its franchisees under specific circumstances. This is intended to manage the costs and burdens associated with electronic discovery, ensuring they are proportional to the dispute.

Specifically, an arbitrator can deny electronic discovery requests if the costs and burdens of the electronic discovery are disproportionate to the nature of the dispute. This also applies if the costs are disproportionate to the amount in controversy or to the relevance of the materials requested. In such cases, the arbitrator has the option to either deny the requests outright or order disclosure only if the requesting party agrees to cover the reasonable cost of production for the other party. The allocation of these costs can then be addressed in the final arbitration award.

This provision aims to prevent franchisees from being subjected to overly burdensome or expensive discovery processes, particularly in cases where the potential value of the information obtained does not justify the expense. It also protects Anago from facing unreasonable discovery demands. Prospective franchisees should be aware of these limitations on electronic discovery, as they could impact their ability to obtain certain types of evidence in an arbitration proceeding. It is a fairly common practice to limit the scope and costs of discovery in franchise agreements.