What happens if JAMS is no longer in existence when arbitration commences with Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If JAMS or any successor thereto, is no longer in existence at the time arbitration is commenced, Franchisor and Area Developer will agree on another arbitration organization to conduct the arbitration proceeding.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, if JAMS (Judicial Arbitration and Mediation Services) or any successor is no longer in business when arbitration begins, Hck Hot Chicken and the Area Developer will need to agree on another arbitration organization to handle the arbitration.
This means that if JAMS ceases to exist, the responsibility falls on both Hck Hot Chicken and the franchisee to find a suitable alternative arbitration service. This ensures that a dispute resolution mechanism remains in place, even if the initially designated organization is no longer available. The selection of a new arbitration organization would require mutual agreement, giving the franchisee a say in the process.
For a prospective Hck Hot Chicken franchisee, this clause provides a safeguard. It prevents the arbitration clause from becoming unenforceable simply because JAMS is no longer an option. However, it also introduces a potential point of negotiation, as both parties must agree on the substitute arbitration organization. Franchisees should consider what factors would make an arbitration service acceptable to them in advance, and potentially discuss this issue with Hck Hot Chicken during due diligence.