Can a Counselor Realty franchisee consolidate their arbitration claim with another franchisee's claim?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1 Arbitration. Except as provided below, any dispute arising under or in relation to this Agreement shall be resolved by binding arbitration by the National Center for Dispute Settlement, under its rules for expedited commercial arbitration, in Minneapolis, Minnesota. Each claim or controversy will be arbitrated by Franchisee on an individual basis, and will not be consolidated in any arbitration action with the claim of any other franchisee. The award of the arbitrators is final and binding on all parties. The arbitrators may issue appropriate orders as well as award monetary (but not exemplary or punitive) damages. The prevailing party will be entitled to recover its costs including its reasonable attorneys' fees. We may sue to collect money owed to us, to protect or enforce our rights in the Marks, or to compel inspections or audits.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, franchisees are not allowed to consolidate their arbitration claims with those of other franchisees. The FDD specifies that any claim or controversy will be arbitrated by the franchisee on an individual basis. This means each franchisee must pursue their disputes independently.
This requirement for individual arbitration has significant implications for prospective Counselor Realty franchisees. It prevents franchisees from joining forces in a single arbitration proceeding, even if they have similar or related claims against the franchisor. This could increase the cost and complexity of resolving disputes, as each franchisee must bear the expense of arbitration separately.
While individual arbitration may offer a more streamlined process for resolving simple disputes, it could disadvantage franchisees in more complex cases. The inability to consolidate claims may also limit a franchisee's bargaining power and ability to obtain a favorable outcome. Franchisees should consider these factors carefully when evaluating the franchise opportunity and potential dispute resolution options with Counselor Realty.