Can immediate family members 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.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, immediate family members of the franchisee may be able to join an arbitration proceeding. Specifically, the FDD states that besides the franchisor, the franchisee and their immediate family members, owners, heirs, executors, successors, assigns, shareholders, partners, and guarantors may join or become a party to any arbitration proceeding.
This clause covers disputes arising from the franchise agreement or any other agreement between Buff City Soap and the franchisee. It also includes disputes regarding the relationship between the franchisor and franchisee, the scope and validity of the agreements, and questions about whether a specific claim is subject to arbitration.
However, the FDD also specifies that no party other than those listed above can be involved in or participate in any arbitration. Furthermore, all claims must be arbitrated on an individual basis, and class actions or representative actions are expressly waived. Any disputes regarding the interpretation or enforceability of the prohibition on class-wide or representative arbitration will be resolved by a court, not the arbitrator.