In All County arbitration, can the arbitrator issue preliminary injunctions?

According to All County's 2025 Franchise Disclosure Document, the arbitrator in dispute resolution has the authority to issue preliminary injunctions. Specifically, the arbitrator can 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 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 between All County and a franchisee that goes to arbitration, the arbitrator has broad powers to issue orders to protect either party while the arbitration is ongoing. This can be crucial in situations where immediate action is needed to prevent harm or maintain the status quo. For example, if a franchisee is accused of violating the franchise agreement, All County could seek a preliminary injunction to stop the franchisee from continuing the alleged violation until the arbitration is resolved. Conversely, a franchisee could seek an injunction against All County if they believe All County is acting in a way that harms their business.

However, the FDD also states that actions for equitable relief, including those seeking preliminary or permanent injunctive relief, are exceptions to the arbitration requirement. This means that either party can choose to pursue injunctive relief in court rather than through arbitration. This provides an alternative avenue for seeking immediate relief in situations where arbitration may be too slow or cumbersome. It is important for prospective franchisees to understand these options and consider the potential benefits and drawbacks of each when deciding how to handle a dispute with All County.

It's also important to note that the arbitrator must follow the law and cannot disregard the terms of the Franchise Agreement. The arbitrator cannot stay the effectiveness of any pending termination of the agreement, assess punitive damages, certify a class action, or make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by All County. This limits the arbitrator's power and ensures that the terms of the franchise agreement are upheld.