In All County arbitration, can the arbitrator issue injunctions?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator can issue summary orders disposing of all or part of a claim and provide for temporary restraining orders, preliminary injunctions, injunctions, attachments, claim and delivery proceedings, temporary protective orders, receiverships, and other equitable and/or interim/final relief.
Each party consents to the enforcement of such orders, injunctions, etc. by any court having jurisdiction.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the arbitrator has the power to issue injunctions during arbitration proceedings. Specifically, the arbitrator can provide for temporary restraining orders, preliminary injunctions, and injunctions, as well as other equitable relief. Each party involved in the arbitration consents to the enforcement of these orders and injunctions by any court with jurisdiction.
This means that if a dispute arises that requires immediate action to prevent harm, the arbitrator can issue orders to protect either All County or the franchisee. For example, if a franchisee is believed to be violating the terms of the franchise agreement in a way that could damage the brand, All County could seek an injunction to stop the franchisee's actions while the arbitration is ongoing. Conversely, a franchisee could seek an injunction against All County if the franchisor is acting in a way that harms the franchisee's business.
However, it's important to note that All County retains the right to seek equitable relief, including injunctive relief, through court action, regardless of the arbitration process. This means that All County can bypass arbitration and go directly to court to seek an injunction. This exception to arbitration could be a significant factor for prospective franchisees to consider, as it potentially gives All County an advantage in certain dispute scenarios. Franchisees should seek legal counsel to fully understand their rights and obligations regarding dispute resolution under the franchise agreement.