What happens to any claim that is not submitted or filed as required in a Bang Cookies arbitration proceeding?

According to Bang Cookies's 2024 Franchise Disclosure Document, if a claim is not submitted or filed as required within the same arbitration proceeding as a compulsory counterclaim, as defined under Rule 13 of the United States Federal Rules of Civil Procedure, it will be permanently barred. This means a franchisee could lose the right to pursue that claim in the future.

This requirement emphasizes the importance of franchisees being diligent and thorough in presenting all relevant claims during arbitration. Franchisees must understand what constitutes a compulsory counterclaim under Rule 13 to avoid inadvertently waiving a claim. This rule generally requires a party to assert any claim they have against an opposing party that arises out of the same transaction or occurrence as the opposing party's claim.

For a prospective Bang Cookies franchisee, this means carefully assessing any potential claims against the franchisor and ensuring they are properly raised during arbitration. It may be prudent to consult with an attorney to identify all possible claims and ensure compliance with the procedural requirements for submitting them. Failure to do so could result in the loss of the right to pursue those claims, regardless of their merit.