Who is allowed to join an arbitration proceeding related to the Buff City Soap franchise agreement?

According to the 2025 Buff City Soap Franchise Disclosure Document, only Buff City Soap (including its employees, agents, officers or directors and its parent, subsidiary or affiliated companies) and the Developer (franchisee) are allowed to join an arbitration proceeding. This also includes, where applicable, the immediate family members, owners, heirs, executor, successors, assigns, shareholders, partners, and guarantors of the franchisee.

This clause explicitly prohibits class action lawsuits, ensuring that disputes are handled individually between Buff City Soap and each franchisee. This limitation applies to any arbitration proceeding arising under or related to the Franchise Agreement or any other agreement between Buff City Soap and the franchisee. It also includes disputes regarding the relationship between Buff City Soap and the franchisee, the scope and validity of the agreement, and even questions about whether a specific claim is subject to arbitration.

For a prospective Buff City Soap franchisee, this means that any legal disputes must be pursued individually, and joining with other franchisees in a class action is not permitted. This can potentially increase the cost and complexity of resolving disputes, as the franchisee will bear the full burden of legal expenses. However, it also means that the franchisee's case will be considered on its own merits, without being influenced by the claims of other franchisees.

This type of clause is relatively common in franchise agreements, as franchisors often seek to avoid the risk of large class action lawsuits. Franchisees should carefully consider the implications of this clause and consult with an attorney before signing the Franchise Agreement.