What rules govern the arbitration process for Chocolate Fish Coffee disputes?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
after this Agreement ends.
- 16.2 Assumption. An Indemnitee may elect to assume the defense of any Action subject to this indemnification, and control all aspects of defending the Action, including negotiations and settlement, at Franchisee's expense. Such an undertaking shall not diminish Franchisee's obligation to indemnify the Indemnitees.
ARTICLE 17. DISPUTE RESOLUTION
17.1 Arbitration.
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsection (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 Chocolate Fish Franchising'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 Chocolate Fish Franchising'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 Chocolate Fish Franchising to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation. Unless this Agreement has been terminated, Chocolate Fish Franchising 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.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, any controversy or claim between Chocolate Fish Coffee and the franchisee will be resolved through arbitration. This arbitration will be managed by the American Arbitration Association, following its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. The arbitration will take place in the city and state where Chocolate Fish Franchising's headquarters is located. The document does not specify the city and state of Chocolate Fish Franchising's headquarters. Judgment on the arbitrator's award can be entered in any court with jurisdiction. All documents, information, and results related to any arbitration or lawsuit will be kept confidential, unless disclosure is required by law or for Chocolate Fish Coffee to comply with franchise regulations.
However, there are exceptions to the arbitration requirement. Either party can seek injunctive relief from an arbitrator or a court, without waiving the right to arbitrate, to protect their interests while the arbitration is ongoing. Additionally, Chocolate Fish Coffee or the franchisee can bring claims involving alleged infringement of Chocolate Fish Coffee's intellectual property rights in a court authorized to hear such claims.
The FDD also stipulates that all claims must be pursued on an individual basis, with both parties waiving any right to participate in class-action lawsuits. Any arbitration or legal action related to the Franchise Agreement must be initiated within two years from the date the party discovers the conduct or event that forms the basis of the claim. This time limitation does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or trademarks. In any legal proceeding, including arbitration, the non-prevailing party is responsible for paying the prevailing party's attorney fees, costs, and other expenses. During any arbitration or litigation, both Chocolate Fish Coffee and the franchisee must continue to comply with the Franchise Agreement and fulfill their respective obligations, unless the agreement has been terminated.