Can an arbitrator grant provisional or equitable remedies in a dispute with Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Annex Brands' 2025 Franchise Disclosure Document, an arbitrator can grant provisional or equitable remedies. The FDD specifies that any provisional or equitable remedy available from a court of law will also be available from the arbitrator. This means that during arbitration, the arbitrator has the power to issue orders or take actions necessary to protect either Annex Brands or the franchisee from irreparable harm while the dispute is being resolved.
This provision ensures that neither party is at a disadvantage during the arbitration process and that both have access to remedies that can prevent significant damage before a final decision is reached. Provisional remedies might include temporary restraining orders or preliminary injunctions, which can be crucial in disputes involving intellectual property, trade secrets, or breaches of contract. Equitable remedies could involve specific performance, requiring a party to fulfill their contractual obligations.
It is also stated that any party may 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 the Agreement. The parties also consent to the non-exclusive jurisdiction of the federal and state courts located in San Diego County, California for any action to compel arbitration, to enforce the award of the arbitrator, or at any time before the qualification and appointment of the arbitrator, for temporary, interim, or provisional equitable remedies.
This clause provides franchisees with assurance that they have access to a full range of legal remedies, even within the arbitration framework. It also specifies that the judgment on the award of the arbitrator may be enforced in any court having jurisdiction, reinforcing the binding nature of the arbitration decision.