Does the controversy resolution process for Angry Chickz disputes extend to disputes regarding the arbitrability of claims?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
11.1 Arbitration.
- 11.1.1 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 Developer (and Developer'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 Developer or any provision of any of such agreements (including this ARTICLE 11);
- (b) Company's relationship with Developer;
- (c) the arbitrability of any controversies, disputes or claims;
- (d) the scope and validity of this Agreement or any other agreement between Developer and Company or any provision of any of such agreements (including the scope and validity of the arbitration obligations under this Section 11.1, which Developer and Company acknowledge is to be determined by an arbitrator and not a court); or
(e) any of the Standards
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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the arbitration clause explicitly includes disputes over the arbitrability of claims. This means that any disagreement about whether a particular issue is subject to arbitration will itself be decided through arbitration, rather than in court.
This is significant for a prospective Angry Chickz franchisee because it limits their ability to challenge the arbitration process. If a franchisee believes that a dispute should not be arbitrated, the arbitrator, not a judge, will decide that issue. This can streamline dispute resolution but also means the franchisee has less recourse to challenge the process.
The FDD specifies that all controversies, disputes, or claims between Angry Chickz and the developer arising out of or related to the arbitrability of any controversies, disputes, or claims will be submitted for arbitration to JAMS. The arbitration proceedings will be heard by one arbitrator in accordance with the then existing JAMS Comprehensive Arbitration Rules and Procedures. The proceedings will be held at a suitable location chosen by the arbitrator within twenty-five miles of Angry Chickz's principal business address.