Does Amorino have the right to seek injunctive relief in any jurisdiction?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Dispute u. | Section 22 of | In the event of any dispute arising out of or in connection with |
|---|---|---|
| resolution by | the Franchise | the franchise agreement or the relationship of the parties, |
| arbitration or | Agreement | including without limitation any claim related to termination or |
| mediation | expiration of the franchise agreement and any claim for damages and/or compensation related thereto, the parties agree to submit the matter to mediation under the American Arbitration Association Commercial Mediation Rules. If the mediation is not successful, any controversy, claim, cause of action or dispute arising out of, or relating to any of your stores or the franchise agreement, including, but not limited to (i) any claim by you, or any person in privity with or claiming through, on behalf of or in the right of you, concerning the entry into, performance under, or termination of, the franchise agreement or any other agreement entered into by us, or our subsidiaries or affiliates, and you, (ii) any claim against a past or present employee, officer, director or agent of us, (iii) any claim of breach of the franchise agreement, and (iv) any claims arising under state or federal laws, shall be submitted to final and binding arbitration as the sole and exclusive remedy for any such controversy or dispute. | |
| Choice | Section 22 of | Subject to applicable state law, except for our right to obtain |
| v. | ||
| of forum | the franchise | injunctive relief in any appropriate jurisdiction, any dispute |
| agreement | arising out of the franchise agreement or our relationship shall first be submitted to mediation, and if it is not resolved in mediation, then it shall be submitted to arbitration, under the rules of the American Arbitration Association, to take place in New York County, New York. | |
| Choice | Section 22.A | Subject to applicable state law, governed by Delaware law. If |
| w. | ||
| of law | of the franchise | we move our headquarters, we may choose to have the law of |
| agreement | the new state apply by giving you notice within 6 months following our move. | |
| Provision | Section in Area Development Agreement | Summary (Area Development Agreement) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino retains the right to seek injunctive relief in any appropriate jurisdiction regarding disputes arising from the franchise agreement or the relationship with the franchisee. However, the FDD stipulates that, subject to applicable state law, before pursuing injunctive relief, disputes must first undergo mediation and, if unresolved, then proceed to arbitration in New York County, New York. This clause applies both to disputes arising out of the franchise agreement and the area development agreement.
This means that while Amorino can seek immediate court intervention to prevent certain actions by a franchisee (like misuse of trademarks or breach of confidentiality), they are generally obligated to attempt mediation and arbitration first. This is a fairly standard practice in franchising, intended to provide a quicker and less expensive means of resolving disputes compared to full-blown litigation.
For a prospective Amorino franchisee, this indicates that while the franchisor can act swiftly to protect its brand and system, there is also a commitment to alternative dispute resolution methods. Franchisees should be aware of the specific circumstances under which Amorino might seek injunctive relief and understand the process of mediation and arbitration as outlined in the franchise agreement. Understanding these dispute resolution steps is crucial for managing potential conflicts that may arise during the franchise term.