In an Afuri Ramen Dumpling arbitration, is injunctive relief available to either party?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ill be governed by and construed under, all issues relating to its appropriateness for arbitration or the enforcement of the agreement to arbitrate contained in this Agreement will be governed by the Federal Arbitration Act (9 U.S.C. §_1 et seq.) and the federal common law of arbitration.
- D. The provisions of this Section will not limit our right to seek and obtain any provisional or final remedy, including, but without limitation, injunctive relief, an order for payment of any monies due and owing by you, an order for recovery or delivery up of possession, or for specific performance, or similar relief, from any court of competent jurisdiction, as may be necessary in our sole judgment to protect the Marks and the System and our Confidential Information and property rights, to enforce the restrictive covenants of this Agreement, to enforce our contractual rights, and to protect against actual or threatened conduct that on balance would cause or be likely to cause loss or damage if allowed to continue pending completion of an arbitration proceeding.
- 9.8.3 Injunctive Relief and Specific Performance. Either party may obtain in any court of competent jurisdiction specific performance and injunctive relief to restrain a violation by the other party of any term or covenant of this Agreement. Nothing contained in this Agreement will bar us or you to obtain specific performance of the provisions of this Agreement and injunctive relief against threatened
conduct that will cause you or us loss or damages under customary equity rules, including applicable rules for obtaining restraining orders and preliminary injunctions.
- 9.8.4 Governing Law.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, both the franchisor and franchisee can seek injunctive relief in disputes. Specifically, either party may pursue specific performance and injunctive relief in any court with jurisdiction to prevent violations of the Franchise Agreement. This means that if one party violates the agreement, the other can ask a court to order them to stop the violating behavior.
Afuri Ramen Dumpling retains the right to seek provisional or final remedies, including injunctive relief, from a competent court to protect its Marks, System, Confidential Information, and property rights. This also extends to enforcing restrictive covenants and contractual rights, and to protect against conduct that could cause loss or damage pending the completion of arbitration proceedings. This provision ensures Afuri Ramen Dumpling can act swiftly to protect its brand and operational integrity.
Furthermore, the document states that in any arbitration, the parties are entitled to injunctive relief or specific performance of the obligations of the other. This ensures that the arbitrator has the power to enforce the terms of the agreement and prevent further violations during the arbitration process. This ability to seek injunctive relief is a standard practice in franchising, allowing parties to protect their interests while resolving disputes through arbitration.