Where are arbitration proceedings held if a dispute arises with 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 Hck Hot Chicken's principal place of business, which is currently Sarasota, FL. This applies unless prohibited by applicable law.
This means that if a dispute arises that cannot be resolved through mediation, the arbitration, which is a binding legal process, will take place near the company's headquarters. This location is specified as Sarasota, Florida. The document also stipulates that all arbitration proceedings and claims must be filed and prosecuted separately and individually, meaning class action lawsuits are not permitted. Each area developer or franchisee must pursue their claims independently.
Furthermore, the arbitrators do not have the authority to award punitive or exemplary damages, and they cannot modify or change the material provisions of the Development Agreement. The agreement to arbitrate is self-executing, so if a party fails to appear at a properly noticed arbitration proceeding, an award may still be entered against them. The Federal Arbitration Act governs issues related to arbitrability or the enforcement of the arbitration agreement, regardless of the state law governing the Development Agreement.
The arbitration proceedings and related documents are to remain confidential, with limited disclosure exceptions for agents, employees, expert witnesses, or representatives of the parties. The costs of the arbitrator are to be shared equally between the parties, but the substantially prevailing party will be able to recover their actual costs and expenses, including arbitrator's and attorney's fees, from the other party. This clause aims to ensure that disputes are resolved efficiently and fairly, while also protecting sensitive business information.