Under what conditions does the Body20 franchise agreement state that the arbitration clause will not apply to a dispute?

According to the 2025 Body20 Franchise Disclosure Document, the arbitration clause within the franchise agreement will not apply if any court or arbitrator determines that the prohibition on class-wide arbitration is unenforceable with respect to a dispute that would otherwise be subject to arbitration. In such a case, the dispute will be resolved in a judicial proceeding as described in Section 16.3(d) of the agreement, which covers 'Excepted Disputes'.

This means that while Body20 generally prefers disputes to be resolved through individual arbitration, a franchisee may be able to pursue a class-action lawsuit in court if the clause preventing class-wide arbitration is deemed unenforceable. This could occur if a law changes or if the specific circumstances of the dispute make the class-action waiver unfair or illegal.

It is important for a prospective Body20 franchisee to understand the implications of this clause. While arbitration is often faster and less expensive than litigation, it may not be the best option for all disputes. If a franchisee believes they have a claim that would be better pursued as part of a class action, they should consult with an attorney to determine whether the class-action waiver is enforceable in their specific case. The franchisee should also be aware of Section 16.3(d) to understand what types of disputes are 'Excepted Disputes'.