Can a Nothing Bundt Cakes arbitration proceeding be consolidated or joined with another arbitration proceeding involving Nothing Bundt Cakes?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you agree that arbitration will be conducted on an individual basis and not in a class, consolidated, or representative action, that only we (and our affiliates and our and their respective owners, officers, directors, agents, and employees, as applicable) and you (and your affiliates and your and their respective owners, officers, and directors, as applicable) may be the parties to any arbitration proceeding described in this Section, and that no such arbitration proceeding may be consolidated or joined with another arbitration proceeding involving us and/or any other person. Despite the foregoing or anything to the contrary in this Section or Section 19.1, if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 19.5, then we and you agree that this arbitration clause will not apply to that dispute, and such dispute will be resolved in a judicial proceeding in accordance with this Section 19 (excluding this Section 19.5).
This Section's provisions are intended to benefit and bind certain third-party non-signatories and will continue in full force and effect after and notwithstanding expiration or termination of this Agreement.
Despite your and our agreement to arbitrate, each has the right to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction, provided, however, each must contemporaneously submit its dispute for arbitration on the merits as provided in this Section.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, arbitration proceedings are to be conducted on an individual basis. This means that a franchisee cannot participate in a class action, nor can they consolidate or join their arbitration with another proceeding involving Nothing Bundt Cakes or any other person. This applies to Nothing Bundt Cakes and their affiliates, as well as their respective owners, officers, directors, agents, and employees. Similarly, this restriction applies to the franchisee, their affiliates, and their respective owners, officers, and directors.
However, there is an exception to this rule. If a court or arbitrator determines that the clause preventing class, consolidated, or representative actions is unenforceable, then the agreement to arbitrate will not apply to the specific dispute in question. In such a case, the dispute will be resolved through a judicial proceeding.
Despite the agreement to arbitrate, both Nothing Bundt Cakes and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief from a court, provided that they simultaneously submit the dispute for arbitration on its merits. This ensures that urgent matters can be addressed quickly while the arbitration process proceeds.