Can arbitration proceedings involving Big Apple Bagels be consolidated with other arbitration proceedings?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, arbitration proceedings are to be conducted on an individual basis. The agreement explicitly states that arbitration between Big Apple Bagels and a franchisee will not be consolidated with any other arbitration proceeding. 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 the arbitration.

This means that a Big Apple Bagels franchisee cannot join their arbitration case with other franchisees who may have similar disputes with the franchisor. Each franchisee must pursue their claim independently. This can be a disadvantage for franchisees, as it prevents them from pooling resources or presenting a unified front against the franchisor.

The requirement for individual arbitration is a common practice in franchising. It limits the franchisor's exposure to large, class-action style arbitration claims. However, it can make it more difficult and expensive for individual franchisees to pursue their legal rights. Prospective franchisees should consider this when evaluating the franchise agreement and factor in the potential costs of resolving disputes through individual arbitration.