Does the Big O Tires arbitration agreement allow for claims to be resolved by a judge or jury?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Arbitration is a method of resolving any Claim without filing a lawsuit. In this Arbitration Agreement and Class Action Waiver (collectively including all of this section of this Plan), You, We/the Administrator and Obligor (the "Parties") are agreeing to submit any and all Claims to binding arbitration on an individual basis for resolution. This Arbitration Agreement and Class Action Waiver sets forth the terms and conditions of our agreement to binding arbitration. The Parties agree that any and all claims, disputes and controversies related in any way to this Plan, including but not limited to claims related to the underlying transaction giving rise to this Plan, or claims related to the sale, financing or fulfillment of this Plan (collectively, "Claims"), shall be resolved by final and binding arbitration. "Claims" shall be given the broadest meaning possible and includes, without limitation, Claims arising under contract, tort, statute, regulation, rule, ordinance or other rule of law or equity, and Claims against any of Administrator's and Obligor's owners, shareholders, members, affiliates, subsidiaries, divisions, directors, officers, employees, representatives, agents, successors, or assigns. "Claims" does not include a statutory claim for public injunctive relief brought under any California statute enacted for a public reason, provided that you are a California resident or that you received your Plan in California. In arbitration, Claims are resolved by an arbitrator and not by a judge or jury. THE PARTIES, INCLUDING YOU, WAIVE ANY RIGHT TO HAVE CLAIMS DECIDED BY A JUDGE OR JURY. In addition, except as expressly stated in the Class Action Waiver or otherwise expressly stated herein, the arbitrator shall have exclusive authority to decide all issues related to the enforcement, applicability, scope, validity, and interpretation of this Arbitration Agreement, including but not limited to any unconscionability challenge or any other challenge that the Arbitration Agreement is void, voidable or otherwise invalid. Notwithstanding this agreement to arbitrate, each of the Parties retains the right to seek remedies in small claims court to resolve any Claim, on an individual basis, within the jurisdiction of small claims court. You acknowledge your understanding that all Parties hereunder are waiving their rights to go to court, except for small claims court, to resolve any Claims arising under or related to this Plan.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the arbitration agreement generally prevents claims from being decided by a judge or jury. Instead, disputes are resolved through binding arbitration, where an arbitrator makes the decision. However, there are exceptions where Big O Tires may bring actions in a court of competent jurisdiction, specifically related to the Marks or copyrights or to enforce the provisions of Article 20 of the agreement.
The FDD specifies that in arbitration, claims are resolved by an arbitrator instead of a judge or jury, and the parties waive any right to have claims decided by a judge or jury. The arbitrator has exclusive authority to decide issues related to the enforcement, applicability, scope, validity, and interpretation of the arbitration agreement. This includes challenges related to unconscionability or the agreement's validity.
There are a couple of exceptions to this arbitration agreement. The parties retain the right to seek remedies in small claims court for individual claims within the jurisdiction of that court. Also, the decision of whether the arbitration may proceed as a class action shall be made by the court. This means that while most disputes must go to arbitration, certain limited claims can still be pursued in court. The franchisee should consult with a legal professional to fully understand the implications of this arbitration agreement and its exceptions.