If a Buona franchisee is controlled by another franchisee, can they be joined in arbitration?

According to Buona's 2025 Franchise Disclosure Document, if a Buona franchisee controls, is controlled by, or is in active concert with another Buona franchisee, then the joinder of those parties to any arbitration between Buona and the franchisee is permitted. This also applies if there is a guarantor of some or all of the franchisee's obligations to Buona. Additionally, the joinder of an owner, director, officer, member, manager, partner, or other representative or agent of either Buona or the franchisee is permitted in arbitration.

This clause ensures that all related parties can be brought into an arbitration proceeding, which can streamline the resolution of disputes. For a prospective franchisee, this means that if they have any business relationships or guarantees involving other Buona franchisees, those parties could be compelled to participate in an arbitration. This could be beneficial if it simplifies complex disputes, but it also means that the franchisee could be involved in arbitrations with a broader range of participants.

It is important for a potential Buona franchisee to understand the implications of this clause, especially if they have existing relationships with other franchisees or if their obligations are guaranteed by another party. Franchisees should carefully consider the potential for expanded arbitration proceedings and how it might affect their business and legal strategies. This is a fairly standard clause in franchise agreements, designed to ensure that all relevant parties are present to resolve disputes efficiently.