What rules govern the arbitration process for disputes related to the Hck Hot Chicken franchise?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Said arbitration shall be conducted before and will be heard by three arbitrators in accordance with the then-current Rules of Practice and Procedure of JAMS.
If JAMS or any successor thereto, is no longer in existence at the time arbitration is commenced, Franchisor and Franchisee will agree on another arbitration organization to conduct the arbitration proceeding.
Judgment upon any award rendered may be entered in any Court having jurisdiction thereof.
Except to the extent prohibited by Applicable Law, the proceedings shall be held in the location 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 Franchisee 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 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 Agreement including, but not limited to the method of operation, authorized product line sold or monetary obligations specified in this Agreement, amendments to this Agreement or in the HCK Hot Chicken Brand Standards Manual 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 Agreement specifying the state law under which this 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, any arbitration will be conducted before three arbitrators following the Rules of Practice and Procedure of JAMS (Judicial Arbitration and Mediation Services). If JAMS is no longer in existence, Hck Hot Chicken and the franchisee will agree on a successor organization. The judgment upon any award may be entered in any court having jurisdiction. Unless prohibited by law, proceedings will be held closest to Hck Hot Chicken's principal place of business, which is currently Sarasota, FL.
The FDD specifies that all arbitration proceedings must be filed and prosecuted separately and individually, meaning no class actions or consolidated claims are allowed. The arbitrators do not have the authority to grant punitive or exemplary damages. Furthermore, the arbitrator cannot modify or change the core provisions of the franchise agreement, including the method of operation, authorized product line, monetary obligations, amendments to the agreement, or the Hck Hot Chicken Brand Standards Manual.
The arbitration agreement is self-executing, so if either party fails to appear at a properly noticed arbitration proceeding, an award may be entered against them. The Federal Arbitration Act governs all issues relating to arbitrability or the enforcement of the arbitration agreement, regardless of the state law governing the rest of the agreement.
Finally, the FDD states that the entire arbitration proceedings and related documents are confidential, except as required by law or for disclosures in Hck Hot Chicken's franchise disclosure document. This information is not discoverable or admissible in other proceedings, except for evidence that is otherwise discoverable, and it can only be disclosed to agents, employees, expert witnesses, or representatives of the parties.