What happens if the prohibition on class-wide arbitration is deemed unenforceable for a Body20 dispute?

According to Body20's 2025 Franchise Disclosure Document, if a court or arbitrator determines that the prohibition on class-wide arbitration is unenforceable for a dispute that would otherwise be subject to arbitration, the arbitration clause will not apply to that specific dispute. Instead, the dispute will be resolved in a judicial proceeding. This means that the parties would pursue the matter in court rather than through arbitration.

This provision is important for prospective Body20 franchisees because it outlines the process for resolving disputes. While Body20 prefers individual arbitration, the agreement acknowledges that class-wide arbitration bans may not always be enforceable. If such a ban is deemed unenforceable, the dispute shifts to the court system, potentially leading to a more public and possibly more costly legal battle.

This clause attempts to balance the franchisor's interest in avoiding class action lawsuits with legal realities. Franchise agreements often include arbitration clauses to streamline dispute resolution, but this specific clause provides an exception if the class-wide arbitration waiver is invalidated. Franchisees should be aware of this exception and understand that certain disputes could end up in court, despite the initial intention to arbitrate.