What happens to a claim that is not submitted or filed in the Creative World School arbitration proceeding?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) In connection with any arbitration proceeding required under this Agreement, each party shall submit or file any claim that would constitute a compulsory counterclaim (as defined by Rule 13 of the Rules) within the same proceeding as the claim to which it relates. Any compulsory counterclaim which is not submitted or filed in such proceeding shall be barred.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, any compulsory counterclaim that is not submitted or filed in the required arbitration proceeding will be barred. This means a franchisee could lose the ability to pursue that specific claim in the future.
This condition applies to any claim that would be considered a compulsory counterclaim, as defined by Rule 13 of the Rules, within the same proceeding as the original claim. Rule 13 of the Rules is not defined further within the excerpt.
This clause encourages franchisees to bring all related claims at once during arbitration, preventing multiple proceedings and promoting efficiency. However, it also places the onus on the franchisee to identify and present all compulsory counterclaims in a timely manner, or risk losing the right to pursue them later.