Must arbitration with Chicken Guy be conducted on an individual basis?

According to Chicken Guy's 2025 Franchise Disclosure Document, arbitration will be conducted on an individual basis. The document specifies that any arbitration between Chicken Guy and a developer (franchisee), including their affiliates, owners, shareholders, officers, directors, agents, and/or employees, cannot be combined with other arbitration proceedings involving Chicken Guy and another party. This means each franchisee's dispute must be handled separately.

This requirement prevents franchisees from consolidating their claims into a single class-wide arbitration. Individual arbitration can be more costly and time-consuming for the franchisee, as they must bear the expenses alone, without the ability to pool resources with other franchisees. Chicken Guy, on the other hand, can manage disputes on a case-by-case basis, potentially reducing their overall risk exposure.

This clause also means a franchisee cannot benefit from the legal precedents or findings established in other franchisees' arbitration cases against Chicken Guy. Each case is treated as a unique event, requiring the franchisee to build their case independently. While the arbitrator has the authority to award relief, including damages, specific performance, or injunctive relief, they cannot modify the agreement or award punitive damages.

It is important for a prospective Chicken Guy franchisee to understand the implications of this individual arbitration clause. They should consider the potential costs and challenges of pursuing a dispute with Chicken Guy independently. Franchisees may want to seek legal counsel to fully understand their rights and obligations under the franchise agreement, particularly concerning dispute resolution.