Can an arbitration proceeding between Aw and a franchisee be consolidated with other arbitration proceedings?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties hereby agree that arbitration shall be conducted on an individual, not a class-wide basis, and that an arbitration proceeding between us shall not be consolidated with any other arbitration proceeding involving us and any non-party to this Agreement, including other franchisees.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, arbitration proceedings between Aw and its franchisees cannot be consolidated with other arbitration proceedings. The document specifies that arbitration is to be conducted on an individual basis, meaning each case is handled separately.
This restriction prevents a franchisee from joining their arbitration case with other franchisees or any other non-party involved with Aw. This could be a disadvantage for franchisees who might benefit from combining resources or presenting a unified front in disputes. It also means that each franchisee must bear the costs and burdens of arbitration independently.
This clause ensures that Aw deals with each franchisee's dispute separately, potentially streamlining the arbitration process from their perspective. However, it may place a greater burden on individual franchisees who have similar grievances, as they cannot pool resources or share evidence in a consolidated proceeding. Franchisees should consider this aspect when evaluating the dispute resolution process outlined in the franchise agreement.