In Belocal arbitration, can disputes be joined or consolidated with other arbitrations?

According to Belocal's 2025 Franchise Disclosure Document, disputes cannot be joined or consolidated with other arbitrations unless all parties involved agree to it in writing. This means that each dispute must be handled individually through the arbitration process, unless there is a unanimous written agreement to combine them.

For a prospective Belocal franchisee, this condition has significant implications. It prevents franchisees from collectively arbitrating similar grievances against Belocal, potentially increasing the cost and complexity of resolving disputes. Each franchisee with a similar issue would need to pursue arbitration independently, bearing their own costs unless they prevail and the arbitrator awards them fees.

This requirement for individual arbitration is not uncommon in franchising, as franchisors often seek to avoid class-action lawsuits or consolidated arbitrations that could magnify the impact of a dispute. However, it places a greater burden on individual franchisees to pursue their claims separately, potentially discouraging them from seeking resolution for smaller disputes where the cost of individual arbitration might outweigh the potential benefits. Franchisees should carefully consider this provision and its potential impact on their ability to resolve disputes with Belocal.