What arbitration rules and procedures govern Angry Chickz franchise disputes?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
17.1.1 All controversies, disputes or claims between Company (and its Affiliates and its and their respective owners, officers, directors, managers, agents and employees, as applicable) and Franchisee (and Franchisee's Affiliates and its and their respective owners, officers, directors, managers, agents and employees, as applicable) arising out of or related to:
- (a) this Agreement or any other agreement between Company and Franchisee or any provision of any of such agreements (including this Section 17.1);
- (b) Company's relationship with Franchisee;
- (c) the arbitrability of any controversies, disputes or claims;
- (d) the scope and validity of this Agreement or any other agreement between Franchisee and Company or any provision of any of such agreements (including the scope and validity of the arbitration obligations under this Section 17.1, which Franchisee and Company acknowledge is to be determined by an arbitrator and not a court); or
(e) any Standard.
will be submitted for arbitration to JAMS (formerly Judicial Arbitration and Mediation Service). Except as otherwise provided in this Agreement, such arbitration proceedings shall be heard by one (1) arbitrator in accordance with the then existing JAMS Comprehensive Arbitration Rules and Procedures (with the Expedited Arbitration Procedures to limit discovery burdens). Arbitration proceedings shall be held at a suitable location to be chosen by the arbitrator which is within twenty-five (25) miles of Company's principal business address at the time that the arbitration action is filed. The arbitrator has no authority to establish a different hearing locale. All matters within the scope of the Federal Arbitration Act (9 U.S.C. Sections 1 et seq.) will be governed by it and not by any state arbitration law.
17.1.2 The arbitrator shall have the right to award or include in his or her award any relief which he or she deems proper in the circumstances, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief and attorneys' fees and costs, provided that: (1) the arbitrator shall not have authority to declare any Mark generic or otherwise invalid; and (2) except for punitive, exemplary and other forms of multiple damages available to any party under federal law or owed to third parties which are subject to indemnification under this Agreement, Company and Franchisee waive to the fullest extent permitted by law any right to or claim for any punitive, exemplary or other forms of multiple damages against the other and agree that, in the event of a dispute between Company and Franchisee, the party making a claim will be limited to equitable relief and to recovery of any liquidated damages set forth herein and actual damages it sustains. The award and decision of the arbitrator shall be conclusive and binding upon all parties hereto and judgment upon the award may be entered in any court of competent jurisdiction.
17.1.3 Company and Franchisee agree to be bound by the provisions of any limitation on the period of time by which claims must be brought under this Agreement or Applicable Law, whichever expires first. Company and Franchisee further agree that, in connection with any such arbitration proceeding, each shall submit or file any claim which would constitute a compulsory counterclaim (as defined by the then current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding shall be barred. The arbitrator may not consider any settlement discussions or offers that might have been made by either Company or Franchisee. Company reserves the right, but has no obligation, to advance Franchisee's share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so will not be deemed to have waived or relinquished Company's right to seek the recovery of those costs in accordance with this Section 17.
17.1.4 Company and Franchisee agree that arbitration shall be conducted on an individual, not a class-wide, basis, that only Company (and its Affiliates and Company and its respective owners, officers, directors, managers,
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, any controversies, disputes, or claims between Angry Chickz and a franchisee will be submitted for arbitration to JAMS (formerly Judicial Arbitration and Mediation Service). This includes disputes arising from the Franchise Agreement, the relationship between Angry Chickz and the franchisee, the arbitrability of claims, the scope and validity of the agreement, or any standards. The arbitration proceedings will be heard by one arbitrator in accordance with the then-existing JAMS Comprehensive Arbitration Rules and Procedures, with the Expedited Arbitration Procedures used to limit discovery burdens. The arbitration will take place within 25 miles of Angry Chickz's principal business address, as determined by the arbitrator.
The arbitrator has the authority to award relief, including money damages with interest, specific performance, injunctive relief, and attorneys' fees and costs. However, the arbitrator cannot declare any mark generic or invalid. Punitive, exemplary, or multiple damages are waived by both Angry Chickz and the franchisee, except for those available under federal law or owed to third parties subject to indemnification. The arbitrator's decision is conclusive and binding, and judgment upon the award may be entered in any court of competent jurisdiction.
Both Angry Chickz and the franchisee must adhere to any limitations on the time period for bringing claims under the Agreement or applicable law, whichever expires first. Any claim that would constitute a compulsory counterclaim must be submitted in the same proceeding, or it will be barred. The arbitrator cannot consider settlement discussions or offers made by either party. Angry Chickz reserves the right, but has no obligation, to advance the franchisee's share of the arbitration costs without waiving its right to seek recovery of those costs.
Arbitration will be conducted on an individual basis, not a class-wide basis. This means that franchisees cannot participate in a class action against Angry Chickz. This arbitration clause is governed by the Federal Arbitration Act and not by any state arbitration law.