Can guarantors of the Buff City Soap franchisee join in an arbitration proceeding?
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, specifically including whether any specific claim is subject to arbitration at all (i.e. arbitrability questions) and/or the offer or sale of the franchise opportunity; and further, the arbitrator will not be authorized to permit any person or entity that is not a Party to this Agreement or identified in this paragraph to be involved in or to participate in any arbitration conducted pursuant to this Agreement.
No matter how styled by the party bringing the claim, any claim or dispute is to be arbitrated on an individual basis and not as a class action or representative action, and further, no claim may be consolidated or joined. FRANCHISEE EXPRESSLY WAIVES ANY RIGHT TO ARBITRATE OR LITIGATE AS A CLASS ACTION OR IN A PRIVATE ATTORNEY GENERAL CAPACITY.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, guarantors of a Buff City Soap franchisee can join an arbitration proceeding. Besides the franchisor, the franchisee, and their associated parties, no other party can participate in the arbitration.
The FDD specifies that the franchisee's immediate family members, owners, heirs, executors, successors, assigns, shareholders, partners, and guarantors are included as parties who may join in or become a party to any arbitration proceeding. This arbitration may arise under or related to the Franchise Agreement or any other agreement between Buff City Soap and the franchisee.
This clause ensures that disputes are resolved between the key parties involved in the franchise relationship, while preventing unrelated third parties from becoming involved in the arbitration process. This can help streamline the resolution process and keep it focused on the specific issues between Buff City Soap and its franchisees.
However, the FDD also states that no claim may be consolidated or joined, and any claim or dispute is to be arbitrated on an individual basis and not as a class action or representative action. This means that while guarantors can participate, they cannot bring or join class action lawsuits against Buff City Soap.