Are all disputes with Bath Tune Up subject to arbitration, and if not, what is the exception?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, not all disputes are subject to alternative dispute resolution. Item 11.1 states that any dispute between Bath Tune Up and a franchisee arising from the franchise agreement is subject to the dispute resolution provisions described in Section 11, except as described in Section 11.2.
Section 11.2 outlines specific exceptions where Bath Tune Up may seek injunctive or equitable relief in court rather than through alternative dispute resolution. These exceptions pertain to protecting Bath Tune Up's intellectual property, proprietary materials, and the integrity of the Bath Tune Up system. Specifically, Bath Tune Up may pursue court action to enforce provisions related to intellectual property (Section 6), proprietary materials (Section 7.9), non-compete agreements (Section 8.10), and franchisee obligations after termination or expiration (Section 12.1). This also applies to any separate confidentiality or non-disclosure agreements.
In essence, while Bath Tune Up generally prefers alternative dispute resolution methods like mediation and arbitration for most disagreements, it retains the right to seek immediate legal intervention in court to safeguard its brand, system, and confidential information. This is a common practice in franchising, allowing franchisors to quickly address actions that could cause significant damage to the franchise system.