Are there any exceptions to the mediation requirement before arbitration for All County?
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, while mediation is generally required before arbitration, there are specific exceptions. Article 25.12.3 outlines these exceptions, stating that certain claims will not be subject to either arbitration or mediation.
Specifically, All County is not required to participate in mediation or arbitration for any action seeking equitable relief, such as preliminary or permanent injunctive relief, specific performance, or declaratory relief, aimed at preventing harm to a party's tangible or intangible property. This allows All County to immediately seek court intervention to protect its brand and assets without first going through mediation or arbitration.
Additionally, All County is not required to participate in mediation or arbitration for actions involving ejectment or possession of real or personal property, actions that cannot be arbitrated under applicable law, or the franchisor's initial decision to issue a notice of default or termination. These exceptions provide All County with avenues to resolve certain critical disputes quickly through the courts, bypassing the mediation and arbitration processes.
These exceptions to mediation and arbitration are fairly typical in franchise agreements, as they allow a franchisor like All County to protect its brand standards, intellectual property, and contractual rights efficiently. A prospective franchisee should understand these exceptions, as they define the circumstances under which All County might pursue legal action directly without attempting to mediate first.