Can an Apricot Lane arbitration proceeding be consolidated with other arbitration proceedings?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Arbitration must be conducted on an individual, not a class-wide, basis; only FRACHISOR (and/or its affiliates, and its and their respective owners, officers, directors, agents, and employees) and FRANCHISEE (and/or its owners, guarantors, affiliates, officers, directors, agents, and employees, if applicable) may be the parties to any arbitration proceeding described in this Section; and no such arbitration proceeding may be consolidated with any other arbitration proceeding between FRACHISOR and any other person, corporation, limited liability company, or partnership. Notwithstanding the foregoing or anything to the contrary in this Section or
Section 22.D, 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 22.A, then all parties agree that this arbitration clause will not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with this Section 22 (excluding this Section 22.A).
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, arbitration proceedings must be conducted on an individual basis. The agreement explicitly states that arbitration cannot be class-wide and can only involve Apricot Lane (including its affiliates, owners, officers, directors, agents, and employees) and the franchisee (including their owners, guarantors, affiliates, officers, directors, agents, and employees, if applicable).
This means that an Apricot Lane franchisee is prohibited from consolidating their arbitration proceeding with any other arbitration proceeding involving Apricot Lane and another party. Each dispute must be handled separately. This clause ensures that Apricot Lane will not be involved in large, consolidated arbitration cases involving multiple franchisees or other entities.
However, the FDD provides an exception. If a court or arbitrator determines that the prohibition against class-wide arbitration or consolidation is unenforceable, then the arbitration clause itself will not apply to the dispute. In this case, the dispute will be resolved in a judicial proceeding as outlined in the agreement, excluding the arbitration section. This exception provides a legal recourse if the standard arbitration terms are deemed invalid.
This condition is important for prospective franchisees to understand, as it limits their ability to join forces with other franchisees in a single arbitration case against Apricot Lane. Franchisees should consider the potential costs and complexities of individual arbitration proceedings compared to the possibility of a consolidated action. They should also be aware of the conditions under which the arbitration clause may be deemed unenforceable, potentially leading to a judicial resolution of disputes.