Does the Fat Shack franchise agreement allow the franchisee to waive their right to a jury trial?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
IF A CLAIM MAY BE BROUGHT IN COURT, THEN FSI, THE FSI AFFILIATES, FRANCHISEE AND THE FRANCHISEE AFFILIATES EACH WAIVE THEIR RIGHTS TO A TRIAL BY JURY.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, both Fat Shack and the franchisee waive their rights to a trial by jury if a claim may be brought in court. This waiver is part of the agreement designed to promote stability in the relationship between Fat Shack and its franchisees. This means that any legal disputes that are not subject to mandatory arbitration will be decided by a judge rather than a jury.
This jury trial waiver has significant implications for prospective franchisees. By agreeing to this clause, franchisees give up their right to have a jury of their peers decide their case. Jury trials can be more unpredictable than bench trials (trials before a judge), as jury decisions can be influenced by emotions and biases. Waiving the right to a jury trial may lead to a quicker and potentially less expensive resolution of disputes, as it avoids the complexities and time associated with jury selection and deliberation.
However, it also means that the outcome of any legal dispute will rest solely on the judge's interpretation of the law and the facts presented. Franchisees should consider this carefully, as it could impact their ability to achieve a favorable outcome in certain types of cases. It is advisable to consult with an attorney to fully understand the implications of waiving the right to a jury trial before signing the franchise agreement.
It's worth noting that jury trial waivers are relatively common in franchise agreements. Franchisors often include these waivers to ensure consistency and predictability in dispute resolution. However, franchisees should carefully weigh the potential benefits and risks before agreeing to such a provision.