What is the exception to the arbitration requirement in the Coffee News agreement?
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, disputes between the franchisor and franchisee are generally resolved through arbitration. However, there is an exception to this requirement.
The exception allows either Coffee News or the franchisee to seek injunctive relief in court against conduct that poses an immediate threat of irreparable harm. This means that if one party believes the other is taking actions that could cause damage that cannot be fixed with monetary compensation, they can go to court to seek an order to stop the harmful behavior immediately.
This exception is fairly standard in franchise agreements, as it recognizes that some situations require immediate legal intervention to prevent significant harm. The arbitration proceedings will be conducted in Bangor, Maine, and the administrative costs, including the arbitrator's fees, will be shared equally between the parties. Each party is responsible for their own attorney's fees and expenses.