Does the Coffee News agreement require arbitration before obtaining injunctive relief for irreparable harm?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration.
Except for obtaining injunctive relief by either party against actual or threatened conduct that would cause irreparable harm to that party, all controversies, disputes or claims arising under this Agreement between Franchisor and Franchisee shall be submitted for arbitration to the Office of the American Arbitration Association nearest to Franchisor on demand of either Franchisor or Franchisee.
Such arbitration proceedings shall be conducted in Bangor, Maine.
Except as otherwise provided in this Agreement, such claims shall be heard by one arbitrator in accordance with the then Current Commercial Arbitration Rules of the American Arbitration The administrative cost of the arbitration, including the cost of the Association. arbitrator, shall be borne equally by the parties.
Each party shall be responsible for the payment of its own attorneys' fees and expenses.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the franchise agreement stipulates that all disputes between the franchisor and franchisee will be submitted for arbitration, with one notable exception. Specifically, either party can seek injunctive relief in court against actual or threatened conduct that would cause irreparable harm without first going through arbitration.
This means that Coffee News franchisees and the franchisor retain the right to immediately seek a court order to prevent actions that could cause irreversible damage. This might include, for example, a franchisee's unauthorized use of Coffee News's trademarks or trade secrets, or actions that could severely damage the brand's reputation.
The arbitration proceedings, when required, will be conducted through the American Arbitration Association nearest to the franchisor, which is located in Bangor, Maine. The cost of arbitration, including the arbitrator's fees, will be shared equally between Coffee News and the franchisee, and each party is responsible for their own attorney's fees and expenses.