What controversies or disputes are subject to binding arbitration between Chicken Guy and the Developer?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Arbitration. Subject to Section 22.A., Chicken Guy and Developer agree that all controversies, disputes, or claims between the parties and their respective affiliates, owners, shareholders, officers, directors, agents, and/or employees arising out of or related to: (1) this Agreement; (2) the relationship between the parties; (3) the scope and validity of this Agreement or any provision of this Agreement (including the validity and scope of the arbitration obligations under this Section 22.B., which the parties acknowledge is to be determined by an arbitrator and not a court); or (4) any aspect of the System or any System standard must be submitted for binding arbitration, on demand of either party, to the AAA and in accordance with its then-current rules for commercial arbitration. The arbitration proceedings will be conducted by a single arbitrator. The arbitration will take place in the city where Chicken Guy's principal offices are located at the time the demand for arbitration is filed. The arbitrator will have no authority to select a different hearing locale other than as described in the prior sentence. All matters
Notwithstanding the foregoing or anything to the contrary in this Agreement, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 22.B., then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with this Section 22 (excluding this Section 22.B.).
- **E.
Injunctive Relief.** Notwithstanding anything to the contrary contained in this Section 22, Developer recognizes that its failure to comply with the terms of this Agreement is likely to cause irreparable harm to Chicken Guy, its affiliates and the System.
Therefore, Developer agrees that, in the event of a breach or threatened breach of any of the terms of this Agreement by Developer, Chicken Guy shall be entitled to injunctive relief (preliminary and permanent) restraining that breach and/or temporary restraining orders and/or to specific performance from a court of competent jurisdiction without showing or proving actual damages and without posting any bond or security; provided, however, that Chicken Guy and Developer must contemporaneously submit the disputes for non-binding mediation under Section 22.A. and then for arbitration under Section 22.B. on the merits as provided herein if such disputes cannot be resolved through mediation.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy and the Developer agree to resolve certain controversies, disputes, or claims through binding arbitration. These include issues arising out of or related to the Franchise Agreement itself, the relationship between Chicken Guy and the Developer, and the scope and validity of the agreement or any of its provisions, including the arbitration obligations. Disputes related to any aspect of the Chicken Guy system or its standards are also subject to binding arbitration.
The arbitration process is initiated at the demand of either party and is conducted under the rules of the American Arbitration Association (AAA). A single arbitrator will preside over the proceedings, which will take place in the city where Chicken Guy's principal offices are located when the arbitration demand is filed. The arbitrator's decision is binding, and judgment upon the award may be entered in any court with competent jurisdiction.
However, the FDD also notes some exceptions. If a court or arbitrator deems any part of the arbitration clause unenforceable for a specific dispute, then that particular dispute may be resolved through judicial proceedings instead. Additionally, the Developer acknowledges that failure to comply with the terms of the Franchise Agreement may cause irreparable harm to Chicken Guy, potentially leading to injunctive relief, such as temporary restraining orders or specific performance, sought in court contemporaneously with submitting the disputes to mediation and then to arbitration.