If the arbitration clause does not apply, how will the Clean Your Dirty Face dispute be resolved?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
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
dispute, controversy or claim shall be resolved in a judicial proceeding in accordance with the dispute resolution provisions of this Agreement.
Despite our and your agreement to arbitrate, we and you each have the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction; provided, however, that we and you must contemporaneously submit our dispute, controversy or claim for arbitration on the merits as provided in this Section.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if a court or arbitrator determines that the arbitration clause is unenforceable, the dispute will be resolved in a judicial proceeding. This proceeding will be conducted in accordance with the dispute resolution provisions outlined in the Franchise Agreement.
This means that if a franchisee and Clean Your Dirty Face cannot settle a dispute through arbitration because the arbitration clause is deemed unenforceable, they will have to resolve their issues in court. This could involve filing a lawsuit and going through the litigation process, which can be more time-consuming and expensive than arbitration.
The FDD specifies that any provisions pertaining to judicial proceedings are subject to the agreement to arbitrate. However, in cases where arbitration is not applicable, the standard judicial process will apply, as defined by the Franchise Agreement. This ensures that there is a clear path for dispute resolution, even if the primary method of arbitration is not viable.