Can Bumper Man pursue claims in court related to a breach of confidentiality or non-competition provisions?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing however, a Party will be entitled to seek a temporary restraining order, preliminary injunction, or other equitable relief pending arbitration from any court of competent jurisdiction if the basis for the requested relief is a claim for infringement of Franchisor's intellectual property, violation of the confidentiality provisions of Section 17(b) of this Agreement, or breach of the
non-competition provisions of Section 17(a) of this Agreement. By seeking or obtaining a temporary restraining order, preliminary injunction, or other equitable relief pending arbitration pursuant to the provisions of this Section 24(c)(5), a Party is not relieved of its obligation to have the merits of an Arbitrable Claim decided in accordance with the
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Bumper Man is entitled to seek a temporary restraining order, preliminary injunction, or other equitable relief pending arbitration from any court of competent jurisdiction if the claim involves infringement of Bumper Man's intellectual property, violation of the confidentiality provisions in Section 17(b), or breach of the non-competition provisions in Section 17(a) of the Franchise Agreement.
This means that while the standard dispute resolution process involves binding arbitration, Bumper Man retains the right to immediately seek court intervention to protect its critical interests related to intellectual property, confidential information, and competitive practices. This is a common provision in franchise agreements, as it allows the franchisor to quickly address actions by a franchisee that could cause immediate and irreparable harm to the brand or system.
However, the FDD also states that seeking such relief does not relieve either party of the obligation to have the merits of the claim decided in accordance with the binding arbitration provisions. In other words, while Bumper Man can go to court for immediate injunctive relief, the underlying dispute will still be resolved through arbitration. This ensures both immediate protection and a final resolution through the agreed-upon arbitration process.