factual

Is the agreement to arbitrate considered self-executing for Hck Hot Chicken?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

The arbitration and the parties' agreement therefor shall be deemed to be self-executing, and if either party fails to appear at any properly noticed arbitration proceeding, an award may be entered against such party despite said failure to appear.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Hck Hot Chicken Franchise Disclosure Document, the arbitration agreement is considered self-executing. This means that if either Hck Hot Chicken or the franchisee fails to attend a properly noticed arbitration proceeding, the arbitrator can still issue an award against the non-attending party.

This clause ensures that the arbitration process can proceed even if one party is uncooperative or unresponsive. It prevents either party from obstructing the arbitration by simply refusing to participate. The arbitration will be conducted before three arbitrators in accordance with the then-current Rules of Practice and Procedure of JAMS. If JAMS is no longer in existence, Hck Hot Chicken and the franchisee will agree on another arbitration organization.

Furthermore, the FDD specifies that all issues related to the arbitrability or enforcement of the arbitration agreement are governed by the Federal Arbitration Act, regardless of any state law specified in the agreement. The proceedings will be held in the location closest to Hck Hot Chicken's principal place of business, which is currently Sarasota, FL, unless prohibited by applicable law. All arbitration proceedings must be filed and prosecuted separately and individually, not as part of a class action or consolidated with other claims. The arbitrators do not have the authority to grant punitive or exemplary damages, and they cannot modify the material provisions of the agreement, including the method of operation, authorized product line, or monetary obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.