Will the Cinnaholic arbitration be conducted on an individual or class-wide basis?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
THE ARBITRATION WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND THE ARBITRATION PROCEEDING MAY NOT BE CONSOLIDATED WITH ANY OTHER ARBITRATION PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER PERSON.
NOTWITHSTANDING THE FOREGOING OR ANYTHING TO THE CONTRARY IN THIS SECTION OR SECTION 34, 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 31.2, THEN ALL PARTIES AGREE THAT THIS ARBITRATION CLAUSE SHALL NOT APPLY TO THAT DISPUTE AND THAT SUCH
DISPUTE SHALL BE RESOLVED IN A JUDICIAL PROCEEDING IN ACCORDANCE WITH THIS SECTION 31 (EXCLUDING THIS SECTION 31.2).
IN ALL OTHER RESPECTS, THE RULES OF THE AAA AND THE UNITED STATES ARBITRATION ACT SHALL CONTROL.
JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATION MAY BE ENTERED IN ANY COURT HAVING COMPETENT JURISDICTION THEREOF.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, any arbitration will be conducted on an individual basis, not a class-wide basis. The proceeding may not be consolidated with any other arbitration proceeding between Cinnaholic and any other person.
However, there is an exception to this rule. If any court or arbitrator determines that the clause preventing class-wide arbitration or consolidation is unenforceable, then the arbitration clause will not apply to the dispute. In this case, the dispute will be resolved in a judicial proceeding.
In all other respects, the rules of the American Arbitration Association (AAA) and the United States Arbitration Act will govern the arbitration. Furthermore, the judgment upon the award rendered by the arbitration may be entered in any court having competent jurisdiction.