Does the Annex Brands agreement require parties to submit disputes to a court of competent jurisdiction?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Any party may, but is not required to, submit to any court of competent jurisdiction any controversy, dispute or claim involving a request for monetary or injunctive relief concerning any Mark, involving a request for injunctive relief concerning any lease of real estate, or involving a request for temporary injunctive relief seeking enforcement of this Agreement.
Except as provided in the previous sentence, all disputes arising out of or relating to this Agreement, or rendered under this Agreement, or a default of this Agreement, that cannot be settled amicably, will be resolved by arbitration in person in San Diego, California before 1 neutral arbitrator and administered under the Commercial Arbitration Rules of the American Arbitration Association.
Any provisional or equitable remedy that would be available from a court of law will be available from the arbitrator.
Judgment on the award of the arbitrator may be enforced in any court having jurisdiction thereof.
The parties consent to the non-exclusive jurisdiction of the federal and state courts located in San Diego County, California for any action (a) to compel arbitration, (b) to enforce the award of the arbitrator or (c) at any time before the qualification and appointment of the arbitrator, for temporary, interim or provisional equitable remedies. The parties further consent to service of process in any such action by certified mail, return receipt requested, or by any other means permitted by law.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 Annex Brands Franchise Disclosure Document, the franchise agreement does not require parties to submit disputes to a court of competent jurisdiction. Rather, it states that any party may, but is not required to, submit certain types of disputes to a court of competent jurisdiction. These disputes include those involving a request for monetary or injunctive relief concerning any Mark, a request for injunctive relief concerning any lease of real estate, or a request for temporary injunctive relief seeking enforcement of the Agreement.
However, the Annex Brands agreement specifies that all other disputes arising out of or relating to the agreement that cannot be settled amicably will be resolved through arbitration. This arbitration will take place in person in San Diego, California, before one neutral arbitrator and will be administered under the Commercial Arbitration Rules of the American Arbitration Association.
The agreement also clarifies that any provisional or equitable remedy that would be available from a court of law is also available from the arbitrator. Furthermore, judgment on the arbitrator's award may be enforced in any court having jurisdiction. The parties involved consent to the non-exclusive jurisdiction of federal and state courts in San Diego County, California, for actions to compel arbitration, enforce the arbitrator's award, or seek temporary, interim, or provisional equitable remedies before the arbitrator is appointed. This consent also extends to service of process in such actions via certified mail or any other legally permitted means.