What article of the Bath Tune Up Franchise Agreement governs dispute resolution?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
11. DISPUTE RESOLUTION
11.1. Alternate Dispute Resolution
Except for the disputes described in Section 11.2 of this Agreement and except as otherwise specifically modified by this Section 11, any dispute between Franchisor and any of its Affiliates, on the one hand, and Franchisee and any of its Affiliates, on the other, arising out of, relating to or referencing this Agreement or its breach in any way, including any claim sounding in tort arising out of the relationship created by this Agreement, and any claim that this Agreement or any other of its parts is invalid, illegal, or otherwise voidable or void, is subject to the dispute resolution provisions described in Section 11 of this Agreement.
11.2. Disputes Not Subject To Alternate Dispute Resolution
Franchisee acknowledges that it is important that Franchisor be able to use reasonable efforts to protect the Marks, the System, and the integrity of the Marks and the System. To that end, Franchisor may, at its option, seek injunctive or other equitable relief to enforce the provisions of Section 6 (Intellectual Property), Section 7.9 (Proprietary Materials), Section 8.10 (No Competing Businesses), or Section 12.1 (Franchisee's Obligations Following Termination or Expiration) of this Agreement, or the provisions of any separate confidentiality or non-disclosure agreement between Franchisor or its Affiliates (on the one hand) and Franchisee or its Affiliates (on the other hand) in the Court specified by Section 11.6.
11.3. Option to Mediate Dispute
- (a) In the event of a dispute between the parties, either party may initiate a mediation procedure in accordance with this Section 11.3 by making a written request for mediation with the Judicial Arbitration and Mediation Service (JAMS), the National Franchise Mediation Program administered by the CPR Center for Dispute Resolution of New York, or any other mediation service mutually agreed to by the parties. Any mediation will be conducted according to the procedures of the selected mediation service.
- (b) The object of any mediation subject to this Section 11.3 is to assist the parties in reaching
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, Article 11 of the Franchise Agreement addresses dispute resolution. Specifically, Section 11.1 outlines alternate dispute resolution methods for disagreements between Bath Tune Up and its franchisees, including disputes related to the Franchise Agreement or breaches thereof. This encompasses claims in tort and challenges to the agreement's validity.
However, Section 11.2 states that certain disputes are not subject to alternate dispute resolution. Bath Tune Up retains the right to seek injunctive or equitable relief in court, particularly to protect its intellectual property (Marks), the System, and confidential information. This applies to enforcing provisions related to intellectual property, proprietary materials, non-compete agreements, and franchisee obligations after termination or expiration.
Section 11.3 provides an option for either party to initiate mediation through services like the Judicial Arbitration and Mediation Service (JAMS) or the National Franchise Mediation Program. The mediation process will follow the procedures of the selected service, with the goal of assisting both parties in reaching a resolution.