What happens to any claim which is not submitted or filed in such proceeding for Angry Chickz?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if a claim that would constitute a compulsory counterclaim is not submitted or filed in an arbitration proceeding, it will be barred. This means that franchisees must bring all related claims in the same proceeding.
This requirement is significant for prospective Angry Chickz franchisees because it necessitates a comprehensive approach to dispute resolution. Franchisees need to ensure that all potential counterclaims are identified and included in any arbitration proceeding to avoid losing the right to assert them later. This could require franchisees to conduct thorough due diligence and seek legal counsel to identify all possible claims they might have against Angry Chickz.
Angry Chickz also reserves the right to advance a franchisee's share of the costs of any arbitration proceeding, but doing so does not waive Angry Chickz's right to seek recovery of those costs. Franchisees should be aware of the potential financial implications of arbitration, including the possibility of having to reimburse Angry Chickz for advanced costs.