What happens to any claim that is not submitted or filed as required in a Face Foundrie arbitration?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Area Developer further agree that, in any arbitration proceeding, each must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the United States Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any claim which is not submitted or filed as required is forever barred.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if a claim is not submitted or filed as required in an arbitration proceeding, it is permanently barred. This means a Face Foundrie franchisee could lose the ability to pursue that claim in any legal forum.
Specifically, Face Foundrie requires that any claim that would constitute a compulsory counterclaim under Rule 13 of the United States Federal Rules of Civil Procedure must be submitted or filed within the same arbitration proceeding as the original claim to which it relates. This rule is designed to ensure that all related disputes are resolved in a single proceeding, promoting efficiency and preventing piecemeal litigation.
For a prospective Face Foundrie franchisee, this underscores the importance of diligently identifying and asserting all potential claims during the arbitration process. Failure to do so could result in the permanent loss of the right to pursue those claims, regardless of their merit. Franchisees should consult with legal counsel to ensure full compliance with these requirements and to protect their legal rights.