Under what condition will the Angry Chickz arbitration clause not apply to a dispute?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing or anything to the contrary in this Section, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section, then Company and Developer agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with this ARTICLE 11.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the arbitration clause within the franchise agreement will not apply if a court or arbitrator determines that the clause requiring individual arbitration (and prohibiting class-wide arbitration) is unenforceable. This determination would have to occur with respect to a dispute that would ordinarily be subject to arbitration under the agreement.
This means that if a franchisee attempts to bring a class-action lawsuit against Angry Chickz, and the court finds the prohibition against class-wide arbitration to be unenforceable, the entire arbitration clause becomes void for that specific dispute. The dispute would then be resolved through judicial proceedings.
This provision aims to ensure fairness and legal compliance, allowing franchisees an avenue for resolution should the standard arbitration terms be deemed legally unsound in a particular case. It is important for prospective franchisees to understand this exception, as it could significantly impact how disputes with Angry Chickz are resolved.