Where will arbitration proceedings be held for disputes involving Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent prohibited by Applicable Law, the proceedings shall be held in the principal city closest to Franchisor's
principal place of business (currently Sarasota, FL). All arbitration proceedings and claims shall be filed and prosecuted separately and individually in the name of Area Developer and Franchisor, and not in any class action or representative capacity, and shall not be joined with or consolidated with claims asserted by or against any other area developer or franchisee. The arbitrators shall have no power or authority to grant punitive or exemplary damages as part of its award. In no event may the material provisions of this Development Agreement be modified or changed by the arbitrator at any arbitration hearing. 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. All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained herein shall be governed by the Federal Arbitration Act (9 U.S.C. § 1 et seq.), notwithstanding any provision of this Development Agreement specifying the state law under which this Development Agreement shall be governed and construed. Except as required by Applicable Law, including the required disclosure in Franchisor's franchise disclosure document, the entire arbitration proceedings and related documents are confidential. These matters will not be discoverable or admissible for any purposes, including impeachment, in any litigation or other proceeding involving the parties, and will not be disclosed to anyone who is not an agent, employee, expert witness, or representative for any of the parties; however, evidence otherwise discoverable or admissible is not excluded from discovery or admission as a result of its use in the arbitration. The fees of, and authorized costs incurred by, the arbitrator will be shared equally by the parties, and each party will bear all of its own costs of arbitration; provided, however, that the arbitration decision will provide that the substantially prevailing party will recover from the other party its actual costs and expenses (including arbitrator's fees and expenses, and attorney fees and expenses) incurred in connection with the dispute.
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 will be held in the principal city closest to the franchisor's principal place of business. Currently, Hck Hot Chicken's principal place of business is located in Sarasota, FL. However, this is subject to applicable law, which may prohibit this location.
This means that if a dispute arises between the franchisee and Hck Hot Chicken that cannot be resolved through mediation, the arbitration, which is a formal process for resolving disputes outside of court, will take place in the city closest to Sarasota, FL, unless the applicable law prevents it. This location is significant because it likely dictates where the franchisee will need to travel and potentially incur travel costs to attend the arbitration hearings.
It is also important to note that all arbitration proceedings and claims must be filed and prosecuted separately and individually. Franchisees are not allowed to participate in class action lawsuits against Hck Hot Chicken. The document also specifies that the arbitrators do not have the authority to award punitive or exemplary damages. The fees and authorized costs incurred by the arbitrator will be shared equally by the parties, but the substantially prevailing party will recover costs and expenses, including arbitrator and attorney fees, from the other party.