Can an Extreme Art Studio arbitration proceeding include other franchisees as a party?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Any arbitration or mediation proceeding shall be limited to controversies between us and you, and shall not be expanded to include any other Extreme Art Studio franchisee as a party, or include the adjudication of class action claims.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, any arbitration proceeding is limited to controversies between the franchisee and Extreme Art Studio Franchising, LLC. The agreement explicitly states that arbitration or mediation proceedings cannot be expanded to include other Extreme Art Studio franchisees as a party. Furthermore, the proceedings cannot include the adjudication of class action claims.
This means that if a franchisee has a dispute with Extreme Art Studio that leads to arbitration, they can only pursue the matter individually against the franchisor. They cannot join forces with other franchisees who may have similar grievances to pursue a joint claim. This limitation is a common practice in franchising, as franchisors typically want to avoid multi-party disputes and class action lawsuits.
The arbitration proceedings will be held in Eden Prairie, Minnesota, which is the location of Extreme Art Studio's principal business address. The arbitration award is binding upon the parties and can be entered and enforced in any court of competent jurisdiction. The entire arbitration proceedings and related documents are confidential, except as required by applicable law, including the required disclosure in the franchise disclosure document.