What rights does each party waive regarding an arbitration award related to a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, if a claim is asserted in any legal proceeding not subject to mandatory arbitration, as specified in Section 22.1, involving Franchisee and/or the Franchisee Affiliates, on the one side, and FSI and/or the FSI Affiliates, on the other side, both parties agree that the exclusive venue for disputes between them shall be in the state and federal courts of Colorado, and each waive any objection either may have to the personal jurisdiction of or venue in the state and federal courts of Colorado. Notwithstanding the foregoing, any legal proceeding by FSI or any FSI Affiliate not subject to mandatory arbitration may be brought in any court of competent jurisdiction in the country, state, province, or other geographic area in which the FAT SHACK Restaurant is located or in which Franchisee or any Franchisee Affiliate resides or owns assets. 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)
Based on the 2025 Fat Shack Franchise Disclosure Document, both the franchisee (and their affiliates) and Fat Shack (and their affiliates) waive their rights to a trial by jury if a claim may be brought in court. This waiver is part of an agreement where both parties agree that the exclusive venue for disputes not subject to mandatory arbitration will be in the state and federal courts of Colorado.
This means that if a dispute between the franchisee and Fat Shack ends up in court rather than arbitration, neither party can demand a jury trial. Instead, a judge will decide the outcome of the case. This can potentially streamline the legal process and may reduce the time and expense associated with resolving disputes.
The FDD specifies that this waiver applies to claims asserted in any legal proceeding not subject to mandatory arbitration, involving the franchisee and their affiliates on one side, and Fat Shack and its affiliates on the other. This indicates that the waiver is intended to cover a broad range of potential disputes that might arise between the parties. Franchisees should consider the implications of waiving their right to a jury trial, as it can affect how disputes are resolved and the potential outcomes of legal proceedings.