Under what circumstances is the joinder of parties to an arbitration between Buona and a developer permitted?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, neither Franchisor nor Developer shall attempt to consolidate or otherwise combine in any manner, an arbitration proceeding involving Franchisor and Developer with another arbitration of any kind, nor shall Franchisor or Developer attempt to certify a class or participate as a party in a class action against the other.
- (b) The foregoing notwithstanding, in the event Developer controls, is controlled by, or is in active concert with another developer of Franchisor, or there is a guarantor of some or all of Developer's obligations to Franchisor, then the joinder of those parties to any arbitration between Franchisor and Developer shall be permitted, and in all events, the joinder of an owner, director, officer, member, manager, partner or other representative or agent of Franchisor or Developer shall be permitted.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, while generally neither Buona nor the developer can consolidate or combine an arbitration proceeding with another, there are specific exceptions where joinder of parties is allowed.
Specifically, if the developer controls, is controlled by, or is in active concert with another Buona developer, then the joinder of those parties is permitted in an arbitration between Buona and the developer. Additionally, the joinder of a guarantor of the developer's obligations to Buona is also permitted.
Furthermore, the joinder of an owner, director, officer, member, manager, partner, or other representative or agent of either Buona or the developer is permitted in any arbitration between Buona and the developer. This ensures that all relevant parties with a direct connection to the dispute can be included in the arbitration proceedings, potentially streamlining the resolution process.