Is multiparty arbitration allowed under the Dq Treat franchise agreement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (C) Multiparty arbitration is specifically prohibited, and any arbitration will be on an individual basis alone; the arbitration may not be consolidated or otherwise joined with any other proceeding.
The arbitrator will have no authority or power to proceed with any claim as a multiparty proceeding or a class action or to otherwise join or consolidate any claim with any other claim or any other proceeding involving third parties.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, multiparty arbitration is specifically prohibited. The franchise agreement stipulates that any arbitration must be conducted on an individual basis only. This means a franchisee cannot consolidate or join their arbitration with any other proceeding or claim involving other parties.
This clause prevents franchisees from collectively arbitrating claims against Dq Treat, which could be beneficial to the franchisor. Individual arbitration can be more costly and time-consuming for franchisees, potentially discouraging them from pursuing legitimate claims. The arbitrator also lacks the authority to proceed with any claim as a multiparty proceeding or a class action.
This restriction on multiparty arbitration is a significant point for potential Dq Treat franchisees to consider. It limits their ability to join forces with other franchisees facing similar issues, potentially weakening their position in a dispute with the franchisor. Franchisees should seek legal counsel to fully understand the implications of this clause and its potential impact on their rights and remedies.