Under what conditions is the joinder of other parties to an arbitration between FSI and a Fat Shack franchisee permitted?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that its sole recourse for claims (whether in contract or in tort, in law or in equity, or granted by statute) arising between the parties shall be against FSI or its successors and assigns. Franchisee agrees that the shareholders, directors, members, managers, officers, employees, and agents of FSI and its affiliates (the "Nonparty Affiliates") shall not be personally liable nor named as a party in any action between FSI and Franchisee. To the maximum extent permitted by law, Franchisee waives any such claims against such Nonparty Affiliates.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
Based on the 2025 Fat Shack Franchise Disclosure Document, the circumstances under which other parties can be joined in an arbitration between Fat Shack Franchising International (FSI) and a franchisee are not explicitly detailed in the provided excerpts. The document outlines governing law, consent to jurisdiction, and waivers of jury trials, specifying that the United States Federal Arbitration Act governs enforceability and confirmation of arbitration awards. It also mentions that disputes will be governed by Colorado law, but the Colorado Consumer Protection Act will not apply.
While the document addresses the venue for legal proceedings not subject to mandatory arbitration and waives rights to punitive or consequential damages, it does not provide specific information regarding the joinder of third parties in arbitration. The FDD states that the franchisee's recourse for claims is solely against FSI, not against its shareholders, directors, members, managers, officers, employees, or agents.
Therefore, a prospective Fat Shack franchisee should seek clarification from the franchisor regarding the possibility and conditions for joining other parties in an arbitration. Understanding these conditions is crucial for assessing potential legal risks and the scope of dispute resolution options.