obligation

If an arbitration proceeding has already commenced regarding a Bhc dispute and a party seeks injunctive relief, what action must the party seeking injunctive relief take?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

If an arbitration proceeding has already commenced pursuant to section 14.2 above when a party seeks injunctive relief, then the party seeking such injunctive relief agrees to contemporaneously submit the merits of its dispute to the arbitrator.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, if an arbitration proceeding has already commenced and a party seeks injunctive relief, the party seeking such relief must contemporaneously submit the merits of its dispute to the arbitrator. This means that the party cannot simply seek injunctive relief in court without also presenting the underlying reasons for the dispute to the arbitrator who is already handling the case.

This requirement ensures that the arbitrator, who is already familiar with the dispute, can also consider the request for injunctive relief in the context of the overall case. It prevents parties from circumventing the arbitration process by seeking injunctive relief in court without involving the arbitrator.

This provision aims to maintain the integrity of the arbitration process and ensure that all aspects of the dispute, including requests for injunctive relief, are handled within the arbitration framework. It also helps to avoid potentially conflicting decisions from different forums (i.e., the court and the arbitrator) by keeping the entire matter within the arbitrator's purview.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.