Are all parties to a Creative World School arbitration required to execute a confidentiality agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (j) Except as otherwise required by law, neither party nor the arbitrator may disclose (to anyone not party to the arbitration) the existence, content, or results of any arbitration hereunder, including the record of the arbitration hearing, without the prior written consent of all the parties to the arbitration.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, all parties involved in an arbitration, including the arbitrator, are restricted from disclosing the details of the arbitration to anyone not directly involved. This encompasses the existence, content, and outcomes of the arbitration, including the hearing records. The only exception to this rule is if disclosure is legally mandated. To share any of this information, all parties involved in the arbitration must provide prior written consent.
This confidentiality clause ensures that the details of any disputes between Creative World School and its franchisees remain private, which can be beneficial for both parties. Franchisees may appreciate the discretion, as it prevents sensitive business information or disagreements from becoming public knowledge. Creative World School also benefits by maintaining a consistent brand image and preventing negative publicity that could arise from publicized disputes.
However, it's important to note that this confidentiality agreement does not prevent either Creative World School or the franchisee from seeking temporary restraining orders or preliminary injunctive relief in a court of law. In such cases, the dispute must also be submitted for arbitration on its merits. This ensures that while some aspects of the dispute may be handled publicly through the courts for immediate relief, the underlying issues are still addressed privately through arbitration.