In disputes with Angry Chickz, who determines the scope and validity of the arbitration obligations?

According to the 2025 Angry Chickz Franchise Disclosure Document, in the event of controversies, disputes, or claims between Angry Chickz and the developer, the scope and validity of the arbitration obligations will be determined by an arbitrator, not a court. This includes disputes related to the franchise agreement itself, the relationship between Angry Chickz and the developer, or the arbitrability of the disputes.

This means that if a franchisee has a disagreement with Angry Chickz that leads to arbitration, the arbitrator will decide whether the issue falls under the arbitration agreement and whether that agreement is valid. This is a significant point, as it takes the initial decision-making power away from the courts and places it in the hands of an arbitrator selected through JAMS (formerly Judicial Arbitration and Mediation Service).

Typically, franchise agreements include arbitration clauses to resolve disputes outside of the court system, which can be more efficient and cost-effective. However, the specific delegation of determining the scope and validity of the arbitration agreement to the arbitrator is a notable provision. Franchisees should understand that they are agreeing to have an arbitrator, rather than a judge, make these initial determinations, which could impact their legal options and strategies in case of a dispute with Angry Chickz.

Prospective Angry Chickz franchisees should carefully review the arbitration clause and understand its implications, including the selection process for the arbitrator, the rules and procedures that will govern the arbitration, and the potential costs involved. It is advisable to seek legal counsel to fully understand the ramifications of agreeing to such a clause.