Does the Body20 franchise agreement allow for consolidation of arbitration proceedings?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Body20 Franchise Disclosure Document, the franchise agreement does not allow for consolidation of arbitration proceedings. The agreement specifies that arbitration will be conducted on an individual basis, not a class-wide basis. This means a franchisee cannot combine their arbitration case with any other arbitration case against Body20.
However, there is an exception to this rule. If a 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 would be resolved in a judicial proceeding as described in the section about excepted disputes.
This clause is significant for prospective Body20 franchisees because it limits their ability to participate in class action lawsuits or consolidated arbitrations against the franchisor. While individual arbitration is still an option, the inability to consolidate may increase the financial burden and complexity of resolving disputes with Body20.