Can Hck Hot Chicken arbitration proceedings be conducted on a class-wide basis?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer and Franchisor agree that arbitration will be conducted on an individual, not a class wide, basis and that any arbitration proceeding between Area Developer and Franchisor will not be consolidated with any other arbitration proceeding involving Franchisor and any other person or entity.
- 10.8 JURY TRIAL & CLASS ACTION WAIVER. THE PARTIES IRREVOCABLY WAIVE:
- (i) TRIAL BY JURY; AND (ii) THE RIGHT TO ARBITRATE OR LITIGATE ON A CLASS ACTION BASIS IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THE PARTIES.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, arbitration proceedings cannot be conducted on a class-wide basis. The document explicitly states that arbitration will occur on an individual basis. This means that each franchisee must pursue their claims independently, and they cannot join together to file a single, collective claim against Hck Hot Chicken.
This policy also prevents franchisees from consolidating their arbitration proceedings with any other proceedings involving Hck Hot Chicken and another person or entity. This ensures that each franchisee's case is handled separately and distinctly.
Furthermore, the document includes a waiver where the parties agree to waive the right to arbitrate or litigate on a class action basis. This waiver applies to any action, proceeding, or counterclaim, whether at law or in equity, brought by either party. This provision reinforces the intent to avoid class actions and ensures that all disputes are resolved on an individual basis, which is a legal term that means a case brought by a single person.