Does the Fly To Fit franchise agreement permit class action lawsuits or arbitrations?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
the arbitration or litigation process.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action. The foregoing time limit does not apply to claims (i) by one party related to non-payment under this Agreement by the other party, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
- 17.5 Venue Other Than Arbitration. For any legal proceeding not required to be submitted to arbitration, the parties agree that any such legal proceeding will be brought in the United States District Court where Fly To Fit Franchise's headquarters is then located. If there is no federal jurisdiction over the dispute, the parties agree that any such legal proceeding will be brought in the court of record of the state and county where Fly To Fit Franchise's headquarters is then located. Each party consents to the jurisdiction of such courts and waives any objection that it, he or she may have to the laying of venue of any proceeding in any of these courts.
- 17.6 Legal Costs. In any legal proceeding (including arbitration) related to this Agreement or any guaranty, the non-prevailing party shall pay the prevailing party's attorney fees, costs and other expenses of the legal proceeding. "Prevailing party" means the party, if any, which prevailed upon the central litigated issues and obtained substantial relief.
**ARTICLE 18.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchise agreement includes stipulations regarding dispute resolution, including class action waivers and arbitration. Specifically, any claims between Fly To Fit and the franchisee must be resolved on an individual basis, meaning franchisees waive their rights to participate in class-wide actions.
Fly To Fit mandates arbitration for most disputes, administered by the American Arbitration Association, with the location being where Fly To Fit's headquarters is located. However, Fly To Fit retains the right to seek injunctive relief in court or bring claims involving intellectual property infringement in a court authorized to hear such claims.
This means that as a Fly To Fit franchisee, you are agreeing to resolve most disputes through individual arbitration rather than joining a class action lawsuit. This could limit your ability to collectively address issues with other franchisees but may offer a more streamlined and cost-effective resolution process for certain disputes. It is important to note that any arbitration or legal action must be initiated within two years of discovering the issue, with some exceptions for non-payment, indemnity claims, or unauthorized use of confidential information or marks.