Does the Chem Dry franchise agreement allow for class-wide arbitration?

Based on the 2024 Chem Dry Franchise Disclosure Document, the document states that the franchise agreement requires binding arbitration. The arbitration will occur in either Nashville, Tennessee, or Salt Lake City, Utah, and the costs associated with arbitration will be equally shared between the parties.

This clause means that any disputes arising between Chem Dry and the franchisee must be resolved through arbitration rather than through the court system. The location of the arbitration and the equal sharing of costs are specific terms that could impact a franchisee's expenses and convenience in resolving disputes. Franchisees in California are encouraged to seek legal counsel to determine the applicability of California and federal laws to provisions restricting venue to a forum outside of the State of California.

It is important to note that the FDD does not specify whether the required binding arbitration allows for class-wide arbitration. A prospective franchisee should seek clarification from Chem Dry on whether class-wide arbitration is permitted or prohibited under the franchise agreement. Understanding this aspect is crucial, as it affects the franchisee's ability to join collective actions against the franchisor.