Does the Bombs Away franchise agreement allow for exceptions to mandatory arbitration?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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 Bombs Away Franchising's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the franchise agreement generally requires disputes to be resolved through arbitration. However, there are specific exceptions where Bombs Away or the franchisee can pursue claims in court.
Specifically, Bombs Away or the franchisee can bring a claim involving an alleged infringement of Bombs Away's intellectual property rights in a court authorized to hear such claims. Additionally, either party may seek interim or provisional injunctive relief from any court having jurisdiction, without waiving the right to arbitrate.
Furthermore, the Rhode Island Rider to the Franchise Agreement states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of the laws of another state, is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. The Washington Addendum also indicates that the arbitration site for franchises purchased in Washington shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator, and that the provisions of the Washington Franchise Investment Protection Act shall prevail in the event of a conflict of laws.