Does the agreement to arbitrate disputes preclude either party from seeking injunctive relief from a court of competent jurisdiction regarding Carvel?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- G.
Injunctive Relief.
Notwithstanding our agreement to arbitrate, either party will have the right to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction with respect to any dispute subject to arbitration; provided, however, that such party must contemporaneously submit the dispute for arbitration on the merits as provided in this Section 19.1.
In addition to any other relief available at law or equity, we will have the right to obtain restraining orders or temporary or permanent injunctions to: (i) enforce, among other matters, the provisions of this Agreement related to the System; (ii) enforce your obligations on termination or expiration of this Agreement; and (iii) prohibit any act or omission by you or your employees that is a violation of applicable Law or that threatens the Intellectual Property.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the agreement to arbitrate does not prevent either party from seeking temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction regarding any dispute subject to arbitration. However, the party seeking such relief must simultaneously submit the dispute for arbitration on the merits.
Carvel also retains the right to obtain restraining orders or temporary or permanent injunctions to enforce provisions related to the System, enforce franchisee obligations upon termination or expiration of the agreement, and prevent actions violating applicable law or threatening intellectual property.
This means that even though disputes are generally resolved through arbitration, both Carvel and the franchisee can seek immediate court intervention to prevent potential harm while the arbitration process is ongoing. This is a common provision in franchise agreements, allowing for quick action to protect the brand and business interests while still adhering to the arbitration requirement for final dispute resolution.