Can a Clean Your Dirty Face arbitration proceeding be conducted on a class-wide basis?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you agree that arbitration will be conducted on an individual basis and that an arbitration proceeding between us and our affiliates, or our and their respective shareholders, officers, directors, agents, and employees, on the one hand, and you (or your owners, guarantors, affiliates, and employees) may not be: (i) conducted on a class-wide basis, (ii) commenced, conducted or consolidated with any other arbitration proceeding, (iii) or brought on your behalf by any association or agency. Notwithstanding the foregoing, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute, controversy or claim that otherwise would be subject to arbitration under this Section, then all parties agree that this arbitration clause shall not apply to that dispute, controversy or claim and that such
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, arbitration proceedings between Clean Your Dirty Face and its franchisees must be conducted on an individual basis. The agreement explicitly states that proceedings cannot be conducted on a class-wide basis. This means a franchisee cannot participate in a class action against the franchisor through arbitration.
This clause also specifies that arbitration cannot be commenced, conducted, or consolidated with any other arbitration proceeding. Furthermore, no association or agency can bring a claim on behalf of the franchisee in arbitration. However, if a court or arbitrator deems any part of this restriction unenforceable, the arbitration clause will not apply to the specific dispute, and it will be resolved in a judicial proceeding.
This limitation on class-wide arbitration is a common practice in franchising. It prevents franchisees from joining together to pursue collective claims against the franchisor, potentially reducing the franchisor's risk of large-scale legal actions. However, it may also limit a franchisee's ability to address systemic issues affecting multiple franchisees, as individual arbitration can be more costly and time-consuming.
Despite the agreement to arbitrate, both Clean Your Dirty Face and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief from a court, provided that the dispute is simultaneously submitted for arbitration on the merits. This ensures that urgent matters can be addressed promptly while still adhering to the arbitration agreement for the underlying dispute.