Under what condition will the arbitration clause not apply to a dispute involving Chicken Guy?

According to the 2025 Chicken Guy Franchise Disclosure Document, the arbitration clause within the franchise agreement will not apply if a court or arbitrator deems all or part of the clause unenforceable concerning a dispute that would typically be subject to arbitration. In such cases, the dispute will be resolved through a judicial proceeding instead, following the guidelines outlined in Section 31 of the agreement, but excluding the arbitration subsection (Section 31.B.).

This provision ensures that if any aspect of the arbitration agreement is found to be invalid, the parties are not left without recourse. Instead, the dispute can be addressed through the court system. This maintains a balance, allowing for disputes to be resolved even if the preferred method of arbitration is not fully applicable.

For a prospective Chicken Guy franchisee, this means that while most disputes are intended to be handled through arbitration, there is a safety net in place should that process be deemed unenforceable. It is important to understand the circumstances under which arbitration might be deemed unenforceable and to be prepared to engage in judicial proceedings if necessary. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement, particularly concerning dispute resolution.