Are actions for equitable relief subject to All County arbitration or mediation?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
25.12.3. Exceptions to Arbitration. Notwithstanding Articles 25.12.1. and 25.12.2., the parties agree that the following claims will not be subject to arbitration or mediation.
25.12.3.1. any action for equitable relief, including, without limitation, seeking preliminary or permanent injunctive relief, specific performance, declaratory relief, other relief in the nature of equity to enjoin any harm or threat of harm to such party's tangible or intangible property, brought at any time, including, without limitation, prior to or during the pendency of any arbitration proceeding initiated hereunder,
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, actions for equitable relief are explicitly excluded from mandatory arbitration or mediation. This means that either All County or the franchisee can pursue such actions in a court of law without first having to go through the processes of mediation or arbitration.
Equitable relief typically involves seeking a court order to compel a party to do something or to stop doing something, rather than seeking monetary damages. Examples include requests for preliminary or permanent injunctive relief, specific performance, or declaratory relief. The FDD specifies that these actions can be brought at any time, even before or during an ongoing arbitration proceeding.
This exception to mandatory arbitration and mediation provides both All County and its franchisees with an important option to seek immediate judicial intervention in situations where waiting for arbitration or mediation could result in irreparable harm. However, it's important to note that other types of disputes are still subject to the mediation and arbitration provisions outlined in the franchise agreement.