Will arbitration be conducted on an individual or class-wide basis for Chicken Guy franchise disputes?

According to Chicken Guy's 2025 Franchise Disclosure Document, arbitration will be conducted on an individual basis, not a class-wide basis. This means that any disputes between Chicken Guy and a franchisee must be handled separately, and franchisees cannot join together to file a single arbitration claim. This requirement extends not only to the franchisee but also to their affiliates, owners, shareholders, officers, directors, agents, and employees. Furthermore, an arbitration proceeding between Chicken Guy and a franchisee cannot be combined with any other arbitration proceeding involving Chicken Guy and another party.

This clause prevents franchisees from leveraging the collective power of a class action, which could be a disadvantage for franchisees who may have limited resources to pursue individual claims. However, it also means that each franchisee's case will be considered on its own merits, without being influenced by the circumstances of other franchisees. This can be beneficial if a franchisee has a unique situation that might be overshadowed in a class action.

It is important for prospective Chicken Guy franchisees to understand this provision, as it affects how they can resolve disputes with the franchisor. Franchisees should consider the potential costs and benefits of individual arbitration compared to class actions and consult with an attorney to understand their rights and options under the franchise agreement.