As defined in the Chicken Guy agreement, who is included in the term 'representatives' of a party?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, when resolving disputes through arbitration, the term 'representatives' includes a party's affiliates, owners, shareholders, officers, directors, agents, and/or employees. This definition applies to both Chicken Guy and the franchisee (Developer). This broad definition is relevant in the context of controversies, disputes, or claims arising out of or related to the Franchise Agreement, the relationship between the parties, the scope and validity of the agreement, or any aspect of the Chicken Guy system.
This definition is important because it clarifies who is bound by the arbitration agreement and whose actions can give rise to a dispute that must be arbitrated. It ensures that disputes involving individuals or entities closely associated with either Chicken Guy or the franchisee are subject to the same arbitration process. This can streamline dispute resolution and prevent parties from circumventing the arbitration agreement by involving related parties in litigation.
For a prospective Chicken Guy franchisee, this means that any disputes involving not only the franchisee themselves but also their owners, shareholders, officers, directors, agents, and employees will be subject to mandatory arbitration. Similarly, disputes involving Chicken Guy's affiliates, owners, shareholders, officers, directors, agents, and employees will also be subject to arbitration. Franchisees should be aware of this broad scope and understand that it limits their ability to pursue legal action in court against a wide range of individuals and entities associated with Chicken Guy.