Is arbitration conducted on an individual or class-wide basis for Big Apple Bagels franchise disputes?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- iii. Franchisor and Franchisee agree that arbitration shall be conducted on an individual, not a class-wide, basis, that only Franchisor (and its affiliates and their respective owners, officers, directors, agents and employees, as applicable) and Franchisee (and its affiliates and their respective owners, officers and directors, as applicable) may be the parties to any arbitration proceeding described in this Section, and that no such arbitration proceeding shall be consolidated with any other arbitration proceeding
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, any arbitration proceedings will be conducted on an individual basis, not class-wide. This means that a franchisee cannot participate in a class action lawsuit against Big Apple Bagels, and must instead pursue any claims individually.
The FDD specifies that only Big Apple Bagels (including its affiliates, owners, officers, directors, agents, and employees) and the franchisee (including their affiliates, owners, officers, and directors) can be parties to an arbitration proceeding. This reinforces the individual nature of the arbitration process and prevents consolidation with other arbitration proceedings.
This clause is intended to prevent franchisees from joining together to pursue collective claims against Big Apple Bagels, which could potentially be more costly and time-consuming for the franchisor. Franchisees should be aware of this limitation and consider the potential costs and challenges of pursuing individual arbitration claims.