What is the exception to the arbitration requirement for All County disputes?
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,
25.12.3.2. any action in ejectment or for possession of any interest in real or personal property;
25.12.3.3. any action which by applicable law cannot be arbitrated; or
25.12.3.4. our decision in the first instance to issue a notice of default and/or notice of termination, or undertake any other conduct with respect to the franchise relationship that might later result in a dispute or controversy between us.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, there are specific exceptions to the requirement that disputes be resolved through arbitration or mediation. These exceptions outline particular types of claims that are not subject to these alternative dispute resolution methods.
Specifically, any action for equitable relief, such as seeking preliminary or permanent injunctive relief to protect tangible or intangible property, is exempt. This means All County or the franchisee can immediately pursue court intervention to prevent potential harm without first going through arbitration or mediation. Similarly, actions related to property possession, such as ejectment, are also excluded from mandatory arbitration.
Furthermore, any action that applicable law prohibits from being arbitrated is also an exception. Finally, All County's initial decision to issue a notice of default or termination, or any other conduct related to the franchise relationship that might lead to a dispute, is not subject to arbitration or mediation. This allows All County to take initial actions without the requirement of engaging in these dispute resolution processes.
These exceptions provide clarity on the types of legal actions that can be pursued directly in court, offering both All County and its franchisees the ability to seek immediate judicial relief in certain situations, bypassing the often lengthy and complex arbitration or mediation processes.