Does the Beem Light Sauna agreement allow for consolidation of arbitration proceedings?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 16.3, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 16.3, then the parties 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 Section 16.3(d) (Excepted Disputes).
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchise agreement does not allow for consolidation of arbitration proceedings. The agreement specifies that arbitration will be conducted on an individual basis, meaning a franchisee cannot combine their arbitration proceeding with any other person's arbitration proceeding against Beem Light Sauna.
However, there is a condition where this prohibition on class-wide arbitration may be deemed unenforceable. If a court or arbitrator determines that the ban on class-wide arbitration is unenforceable, then the arbitration clause will not apply to that specific dispute. In such cases, the dispute will be resolved in a judicial proceeding as outlined in another section of the agreement.
This means that while Beem Light Sauna intends for all arbitrations to be handled individually, there is a legal avenue where this may not be enforced, potentially leading to class action lawsuits if the arbitration clause is deemed unenforceable. Prospective franchisees should be aware of this clause and understand the implications of potentially being involved in individual arbitration versus a class-wide action.