Does the Care Plus Medical Ucc agreement allow for class action lawsuits or arbitrations?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
17.1 Arbitration.
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsection (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
- (b) Location. The place of arbitration shall be the city and state where Care Plus Medical UCC's headquarters are located.
- (d) Intellectual Property Claims. Either party may bring a claim involving an alleged infringement of any of Care Plus Medical UCC's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the franchise agreement includes stipulations regarding dispute resolution, specifically addressing arbitration and class action lawsuits. The agreement mandates that any claims between the parties be resolved on an individual basis, meaning franchisees waive their rights to participate in class-wide actions.
Specifically, the Care Plus Medical Ucc franchise agreement requires controversies or claims to be resolved through arbitration administered by the American Arbitration Association, using its Commercial Arbitration Rules. The location for arbitration will be the city and state where Care Plus Medical Ucc's headquarters is located. This arbitration clause does not apply to claims involving the infringement of Care Plus Medical Ucc's intellectual property rights, which may be brought in a court authorized to hear such claims.
This means a franchisee is giving up the right to join with other franchisees to bring a single case against Care Plus Medical Ucc. This is a fairly standard clause in franchise agreements. The franchisee also agrees to resolve disputes through arbitration, which is generally less expensive and faster than traditional litigation, but it can limit discovery and appeal options.