Does the Christian Brothers Automotive agreement allow for disputes not arising under the agreement to be consolidated with those that do?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) The parties expressly agree that any court with jurisdiction may order the
consolidation of any arbitrable dispute, controversy or claim under this Agreement
with any related arbitrable dispute, controversy or claim not arising under this
Agreement, as the court may deem necessary in the interests of justice or efficiency
or on such other grounds as the court may deem appropriate, provided that the
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the franchise agreement allows for the consolidation of disputes. Specifically, any court with jurisdiction can order the consolidation of an arbitrable dispute, controversy, or claim under the Franchise Agreement with any related arbitrable dispute, controversy, or claim not arising under the agreement.
This consolidation can occur if the court deems it necessary in the interests of justice or efficiency, or on other grounds the court considers appropriate. However, the document specifies that the consolidated disputes, controversies, and claims must be resolved through arbitration.
For a prospective franchisee, this means that if a dispute arises related to the franchise agreement and there are other related disputes not directly tied to the agreement, a court could order these disputes to be combined into a single arbitration proceeding. This could streamline the dispute resolution process, potentially saving time and costs. However, it also means a franchisee could be involved in a more complex arbitration case involving issues beyond the franchise agreement itself.