What happens to a claim that is not submitted or filed as required in a Clean Your Dirty Face arbitration?

According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, any controversy, dispute, or claim that is not submitted or filed as required in an arbitration proceeding will be permanently barred. This means a franchisee could lose the ability to pursue that claim in the future.

Clean Your Dirty Face requires that any controversy, dispute, or claim that would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) must be submitted or filed within the same arbitration proceeding. This is a critical point for franchisees to understand, as failure to properly raise a compulsory counterclaim during arbitration could result in the franchisee losing the right to pursue that claim at all.

This requirement is intended to ensure that all related issues are resolved in a single proceeding, promoting efficiency and preventing piecemeal litigation. However, it places a significant burden on the franchisee to identify and assert all potential counterclaims during the initial arbitration. Franchisees should seek legal counsel to ensure they understand their obligations and protect their rights under the Clean Your Dirty Face franchise agreement.