What rules govern the arbitration process for Better Blend franchise disputes?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
17.1 Arbitration.
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsections (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
- (b) Location. The place of arbitration shall be the city and state where BBF's headquarters are located.
- (c) Injunctive Relief. Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either party also may, without waiving any remedy or right to arbitrate under this Agreement, seek from any court having jurisdiction any interim or provisional injunctive relief.
- (d) Intellectual Property Claims.
Either party may bring a claim involving an alleged infringement of any of BBF's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
- (e) Confidentiality.
All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for BBF to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation.
Unless this Agreement has been terminated, BBF and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, any controversy or claim between Better Blend and a franchisee, including disputes relating to the Franchise Agreement, will be resolved through arbitration. This arbitration will be administered by the American Arbitration Association (AAA) and follow its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. The arbitration award can be entered in any court with jurisdiction. The location for arbitration will be the city and state of Better Blend's headquarters.
There are exceptions to the arbitration requirement. Either party may seek injunctive relief from an arbitrator until an award is rendered or the issue is resolved. Additionally, either party can seek interim or provisional injunctive relief from a court without waiving their right to arbitrate. Better Blend can bring claims involving alleged infringement of its intellectual property rights in a court authorized to hear such claims.
All documents, information, and results related to any arbitration or lawsuit will be kept confidential, unless disclosure is required by law or for Better Blend to comply with franchise regulations. During arbitration or litigation, both Better Blend and the franchisee must continue to comply with the Franchise Agreement and fulfill their obligations. In any dispute, each party waives the right to punitive or other monetary damages not based on actual damages, unless such damages are expressly authorized by federal statute or the Franchise Agreement.
Prospective franchisees should note that these arbitration provisions mandate a specific process and location for dispute resolution, potentially limiting their options for legal recourse. Franchisees in certain states, such as Washington, may have specific rights regarding the location of arbitration or mediation, as determined by state law. Franchisees should carefully consider these factors and consult with legal counsel to understand the full implications of the dispute resolution process.