What are the limitations on discovery in a Fat Shack arbitration proceeding?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Any party to an arbitration proceeding may apply to the arbitrator for reasonable discovery from the other.
In this Agreement, "reasonable discovery" means a party may submit no more than 10 interrogatories, including subparts, 25 requests for admission, 25 document requests, and three depositions per side of the dispute.
The foregoing discovery rights and limitations shall control over any contradictory discovery rules of AAA, unless the parties agree otherwise.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, there are specific limitations on discovery in arbitration proceedings. Any party involved in an arbitration with Fat Shack can request reasonable discovery from the opposing party. However, "reasonable discovery" is explicitly defined within the agreement.
Specifically, a party is limited to submitting no more than 10 interrogatories, including all subparts. They are also restricted to 25 requests for admission and 25 document requests. Furthermore, each side of the dispute is limited to conducting a maximum of three depositions.
These limitations on discovery rights take precedence over any conflicting discovery rules established by the American Arbitration Association (AAA), unless both parties involved in the arbitration mutually agree to modify these limitations. This ensures a standardized and controlled discovery process during arbitration, potentially streamlining the proceedings and reducing costs. A prospective franchisee should understand these limitations, as they could impact their ability to gather evidence and build their case in an arbitration scenario with Fat Shack.