Who can demand binding arbitration for disputes related to the My Salon Suite franchise agreement?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator may not consider any settlement discussions or offers that might have been made by either Franchisor or Franchisee.
- (3) FRANCHISOR AND FRANCHISEE AGREE THAT ARBITRATION WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE, BASIS AND THAT AN ARBITRATION PROCEEDING BETWEEN FRANCHISOR AND ITS AFFILIATES, AND FRANCHISOR AND ITS RESPECTIVE SHAREHOLDERS, OFFICERS,
DIRECTORS, AGENTS, AND/OR EMPLOYEES, AND FRANCHISEE (AND/OR FRANCHISEE'S OWNERS, GUARANTORS, AFFILIATES, AND/OR EMPLOYEES) MAY NOT BE CONSOLIDATED WITH ANY OTHER ARBITRATION PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER PERSON.
(4) Despite Franchisor's and Franchisee's agreement to arbitrate, Franchisor and Franchisee each have the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction; provided, however, that Franchisor and Franchisee must contemporaneously submit their dispute for arbitration on the merits as provided in this Section.
(5) The provisions of this Section are intended to benefit and bind certain thirdparty non-signatories and will continue in full force and effect subsequent to and notwithstanding this Franchise Agreement's expiration or termination.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, both the franchisor and the franchisee agree to resolve disputes through arbitration. This means that either party can initiate the arbitration process to settle disagreements related to the franchise agreement.
The FDD specifies that arbitration will be conducted on an individual basis, not as a class-wide action. This prevents franchisees from joining together in a single arbitration case against My Salon Suite. Additionally, the arbitration proceeding between the franchisor and franchisee cannot be combined with any other arbitration proceeding involving the franchisor and any other person.
Despite the agreement to arbitrate, both My Salon Suite and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief from a court, if appropriate. However, if either party seeks such relief, they must also submit the dispute for arbitration on the merits.
The provisions regarding arbitration are intended to benefit and bind certain third-party non-signatories and will remain in effect even after the franchise agreement expires or is terminated. This ensures that the agreement to arbitrate survives the end of the franchise relationship.