Are there any exceptions to the arbitration requirement for disputes with Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
ute Resolution. This Agreement will be (a) deemed made and entered into, and (b) construed and governed under and in accordance with the laws of the State of California. 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.
- Term & Termination.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, there are specific exceptions to the arbitration requirements outlined in the franchise agreement. Generally, disputes arising from the agreement that cannot be resolved amicably are subject to arbitration in San Diego, California, under the Commercial Arbitration Rules of the American Arbitration Association. However, the agreement allows either party to submit certain controversies to a court of competent jurisdiction. These include requests for monetary or injunctive relief concerning any Mark, requests for injunctive relief concerning any lease of real estate, or requests for temporary injunctive relief seeking enforcement of the agreement.
Additionally, the Illinois State Rider to the Franchise Agreement stipulates that any provision designating jurisdiction and venue in a forum outside of Illinois is void, although arbitration may still take place outside of Illinois. Conversely, the Minnesota State Rider prohibits Annex Brands from requiring arbitration to be conducted outside Minnesota. These state-specific riders highlight the importance of understanding how local laws can modify the standard franchise agreement.
These exceptions and state-specific stipulations provide franchisees with potential alternative routes for dispute resolution, either through court proceedings for specific types of relief or by ensuring arbitration occurs within their state of residence, depending on the applicable state law. Prospective franchisees should carefully review these clauses and riders with legal counsel to fully understand their rights and obligations regarding dispute resolution with Annex Brands.