Does the Body20 franchise agreement allow for class-wide arbitration?
Body20 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 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the franchise agreement specifies that arbitration will be conducted on an individual basis, not a class-wide basis. This means that a Body20 franchisee cannot consolidate their arbitration proceeding with any other arbitration proceeding between Body20 and another person.
However, there is a condition attached to this clause. If any court or arbitrator determines that the prohibition on class-wide arbitration is unenforceable, then the arbitration clause will not apply to that specific dispute. In such a case, the dispute will be resolved in a judicial proceeding as outlined in Section 16.3(d) of the Body20 franchise agreement, which covers excepted disputes.
This clause ensures that Body20 franchisees are generally required to pursue disputes individually through arbitration. However, it also acknowledges the possibility that a court or arbitrator could find the class-wide arbitration prohibition unenforceable, which would then allow for the dispute to be resolved in court.