Does the Buff City Soap franchise agreement allow for the consolidation of arbitration claims?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
No party except Franchisor (including its employees, agents, officers or directors and its parent, subsidiary or affiliated companies) and Franchisee (including where applicable the immediate family members, owners, heirs, executor, successors, assigns, shareholders, partners, and guarantors (as applicable) may join in or become a party to any arbitration proceeding arising under or related to this Agreement or any other agreement between Franchisor and Franchisee, the relationship between Franchisor and Franchisee, the scope and validity of this Agreement or any other agreement between Franchisor and Franchisee, specifica
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, the franchise agreement does not allow for the consolidation of arbitration claims. The agreement specifies that no party, except Buff City Soap and the franchisee, can join or become a party to any arbitration proceeding.
Furthermore, the arbitrator is not authorized to permit any person or entity that is not a party to the agreement to be involved in or participate in any arbitration. The agreement emphasizes that any claim or dispute must be arbitrated on an individual basis and not as a class action or representative action, explicitly prohibiting the consolidation or joining of claims.
This means that each franchisee must pursue any claims against Buff City Soap individually. The franchisee expressly waives any right to arbitrate or litigate as a class action or in a private attorney general capacity. Any questions regarding the interpretation or enforceability of this prohibition on class-wide or representative arbitration will be resolved by a court of competent jurisdiction, and not the arbitrator.