Can an arbitration proceeding between Chicken Guy and a developer be consolidated with another arbitration proceeding?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Chicken Guy and Developer agree that arbitration will be conducted on an individual, not a class-wide, basis, and that an arbitration proceeding between Chicken Guy and Developer and their respective affiliates, owners, shareholders, officers, directors, agents, and/or employees may not be consolidated with any other arbitration proceeding involving Chicken Guy and Developer and another party.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, arbitration proceedings between Chicken Guy and a developer cannot be consolidated with other arbitration proceedings. Chicken Guy and the developer agree that arbitration will be conducted on an individual basis, not as part of a class-wide action.
This means that if a developer has a dispute with Chicken Guy that goes to arbitration, that proceeding must be handled separately and cannot be combined with any other similar arbitration cases involving Chicken Guy and another party. This prevents developers from joining forces in arbitration to pursue claims collectively against Chicken Guy.
This clause ensures that each dispute is resolved individually, potentially making the arbitration process more manageable for Chicken Guy. However, it could also mean that a developer bears the full cost and effort of arbitration without the ability to share resources or strategies with other franchisees facing similar issues. This is a fairly standard clause in franchise agreements, intended to avoid large, complex, and potentially costly consolidated arbitration proceedings.