Must arbitration be conducted on an individual or class-wide basis for Angry Chickz?

According to Angry Chickz's 2025 Franchise Disclosure Document, arbitration must be conducted on an individual basis, not a class-wide basis. This means that any disputes between Angry Chickz and a franchisee will be handled separately, and franchisees cannot join together to file a single arbitration claim. This applies to Angry Chickz, its affiliates, and their respective owners, officers, directors, managers, agents, and employees, as well as the franchisee, its affiliates, and their respective owners, officers, directors, managers, agents, and employees. Only these parties can be involved in any arbitration proceeding. No arbitration proceeding can be combined with any other arbitration proceeding involving Angry Chickz and/or any other person or entity.

However, there is an exception to this rule. If any court or arbitrator determines that the clause prohibiting class-wide arbitration is unenforceable, then the agreement to arbitrate will not apply to that specific dispute. In such a case, the dispute will be resolved in a judicial proceeding.

This clause has significant implications for prospective Angry Chickz franchisees. It prevents franchisees from joining together to pursue claims against the franchisor, which could make it more difficult and expensive to resolve disputes. However, the clause also provides an exception if the prohibition on class-wide arbitration is deemed unenforceable, which could offer some protection to franchisees.