What rules govern the mediation 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)
Based on the 2025 Hck Hot Chicken Franchise Disclosure Document, disputes are resolved through arbitration rather than mediation. The 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 arbitration proceedings will occur in the location closest to Hck Hot Chicken's principal business in Sarasota, FL, unless prohibited by applicable law.
Individual claims must be pursued separately, without class action or consolidation. The arbitrators cannot award punitive or exemplary damages, and they cannot modify the core terms of the franchise agreement or the Hck Hot Chicken Brand Standards Manual, including operational methods, product lines, or monetary obligations. The arbitration agreement is self-executing, meaning an award can be entered against a party that fails to appear. The Federal Arbitration Act governs issues related to arbitrability and enforcement, regardless of the state law governing the agreement.
The entire arbitration process and related documents are confidential, except as required by law, such as disclosures in the franchise disclosure document. These confidential matters are not discoverable or admissible in other proceedings, but evidence that is otherwise discoverable does not become excluded simply because it was used in the arbitration. This framework ensures that disputes are resolved through a structured, confidential, and legally compliant process, with specific limitations on the arbitrators' powers and the scope of the proceedings.