Will any arbitration for Fly Fitness be conducted on a class-wide or multiple plaintiffs basis?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3.3 This arbitration provision is self-executing and will remain in full force and effect after expiration or termination of this Agreement. Any arbitration will be conducted on an individual, and not a class-wide or multiple plaintiffs, basis. If either party fails to appear at any properly noticed arbitration proceeding, an award may be entered against the party by default or otherwise, notwithstanding the failure to appear. Judgment upon an arbitration award may be entered in any court having jurisdiction and will be binding, final and not subject to appeal. No punitive or exemplary damages will be awarded against Franchisor, Developer, or entities related to either of them, in an arbitration proceeding or otherwise, and are hereby waived.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, any arbitration will be conducted on an individual basis, not as part of a class-wide or multiple plaintiffs action. This means that each franchisee must pursue their disputes with Fly Fitness independently.
This clause prevents franchisees from joining together to bring a single arbitration case against Fly Fitness. It could increase the cost and complexity for a franchisee to resolve disputes, as they cannot share resources or consolidate legal efforts with other franchisees who may have similar grievances. The arbitration will be settled by a single arbitrator in accordance with the Commercial Arbitration Rules.
The arbitration proceedings will take place in the State of Nebraska, at the American Arbitration Association offices, or, if Fly Fitness chooses, in the county where the franchisee's principal place of business is located. This arbitration provision remains in effect even after the agreement expires or terminates. The document also specifies that no punitive or exemplary damages will be awarded against Fly Fitness, the franchisee, or related entities during arbitration or any other proceedings, as these are waived.