In the event of a dispute regarding the scope and validity of the Angry Chickz franchise agreement, who is responsible for determining the scope and validity of the arbitration obligations under Section 17.1?

According to the 2025 Angry Chickz Franchise Disclosure Document, in the event of a dispute regarding the scope and validity of the franchise agreement, the arbitrator, not a court, will determine the scope and validity of the arbitration obligations under Section 17.1. Any controversies, disputes, or claims between Angry Chickz and the franchisee, arising out of or related to the franchise agreement, or the relationship between Angry Chickz and the franchisee, will be submitted for arbitration. This includes disputes over the arbitrability of claims and the scope and validity of the agreement itself.

This means that a prospective Angry Chickz franchisee should be aware that any disputes with the franchisor will be resolved through arbitration rather than through the court system. The arbitrator's decision will be binding, and judgment upon the award may be entered in any court of competent jurisdiction. Arbitration proceedings will be heard by one arbitrator in accordance with the then existing JAMS Comprehensive Arbitration Rules and Procedures. The arbitration proceedings will be held at a suitable location to be chosen by the arbitrator within twenty-five (25) miles of Angry Chickz's principal business address at the time that the arbitration action is filed.

This clause ensures that disputes are resolved efficiently and privately, which can be beneficial for both Angry Chickz and the franchisee. However, it also means that the franchisee waives their right to a jury trial and may have limited options for appealing the arbitrator's decision. Prospective franchisees should carefully consider the implications of this arbitration clause and seek legal advice to understand their rights and obligations.