Are there exceptions to the All County arbitration agreement?
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 arbitration agreement. While the standard agreement mandates arbitration or mediation for most claims, certain types of actions are explicitly excluded.
Specifically, All County is not required to engage in arbitration for any action seeking equitable relief, such as preliminary or permanent injunctive relief, specific performance, or declaratory relief, especially when it involves potential harm to tangible or intangible property. Similarly, actions related to ejectment or possession of real or personal property are also exempt from the arbitration requirement.
Additionally, any action that applicable law prevents from being arbitrated is excluded, as is All County's initial decision to issue a notice of default or termination. This means that franchisees might encounter situations where disputes are resolved in court rather than through arbitration, depending on the nature of the claim. It is important for prospective franchisees to understand these exceptions, as they can significantly affect how disputes with All County are handled.