Under what conditions related to class-wide arbitration will the arbitration clause in the Cinnabon franchise agreement not apply?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Individual Actions. We and you agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between us and you may not be consolidated with any other arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 19.1, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 19.1, 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 Section 19.1.D. (Excepted Disputes).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the franchise agreement includes a clause requiring disputes to be resolved through individual arbitration, not class-wide arbitration. This means a franchisee cannot consolidate their arbitration proceeding with any other person against Cinnabon.
However, the arbitration clause will not apply if any court or arbitrator determines that the prohibition on class-wide arbitration is unenforceable. In this case, the dispute will be resolved in a judicial proceeding. This determination would allow a franchisee to pursue their claims against Cinnabon in court rather than through arbitration.
This condition is important for prospective Cinnabon franchisees to understand, as it outlines the circumstances under which they may be able to avoid individual arbitration and participate in a class-wide legal action against the franchisor. Franchisees should consult with legal counsel to fully understand their rights and options regarding dispute resolution.