What happens to any such 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 the arbitrator will not consider the claim, and the franchisee will lose the opportunity to pursue it.
This clause emphasizes the importance of franchisees diligently pursuing all related claims during arbitration. Franchisees must raise any compulsory counterclaims in the initial arbitration, or they risk forfeiting the right to pursue them later. This encourages efficiency in dispute resolution, preventing multiple proceedings for related issues.
Angry Chickz also reserves the right to advance a franchisee's share of arbitration costs without waiving its right to seek recovery of those costs later. This suggests that Angry Chickz may be willing to support franchisees in pursuing arbitration, but ultimately expects to be reimbursed for those costs if the outcome favors them.