Which article of the Counselor Realty Franchise Agreement addresses dispute resolution?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
10. RESOLUTION OF DISPUTES.
- 10.1 Arbitration. Except as provided below, any dispute arising under or in relation to this Agreement shall be resolved by binding arbitration by the National Center for Dispute Settlement, under its rules for expedited commercial arbitration, in Minneapolis, Minnesota. Each claim or controversy will be arbitrated by Franchisee on an individual basis, and will not be consolidated in any arbitration action with the claim of any other franchisee. The award of the arbitrators is final and binding on all parties. The arbitrators may issue appropriate orders as well as award monetary (but not exemplary or punitive) damages. The prevailing party will be entitled to recover its costs including its reasonable attorneys' fees. We may sue to collect money owed to us, to protect or enforce our rights in the Marks, or to compel inspections or audits.
- 10.2 Injunctive Relief. Your breach of this Agreement could cause irreparable damage to Counselor or to other franchisees. Therefore, upon a breach or threatened breach of any of the terms of this Agreement, we are entitled to an immediate injunction restraining such breach and/or a decree of specific performance, pending arbitration or adjudication, without bond, or having to show or prove any actual damage, and without regard to the availability of an adequate remedy at law.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, dispute resolution is addressed in Section 10.1 of the Franchise Agreement. This section stipulates that most disputes will be resolved through individual binding arbitration conducted in Minneapolis, Minnesota, under the rules of the National Center for Dispute Settlement for expedited commercial arbitration. This means that if a franchisee has a disagreement with Counselor Realty, they will likely have to go through arbitration rather than a traditional lawsuit. Each claim will be arbitrated individually and not consolidated with other franchisees' claims.
The arbitration award is final and binding, and the arbitrators can issue appropriate orders and award monetary damages, excluding exemplary or punitive damages. The prevailing party in the arbitration is entitled to recover their costs, including reasonable attorney's fees. However, Counselor Realty retains the right to sue franchisees to collect money owed, protect their rights in the Marks, or compel inspections or audits, indicating that not all disputes are subject to arbitration.
Additionally, Section 10.2 addresses injunctive relief, stating that a breach of the Franchise Agreement by the franchisee could cause irreparable damage to Counselor Realty or other franchisees. In such cases, Counselor Realty is entitled to an immediate injunction restraining the breach or a decree of specific performance, pending arbitration or adjudication, without needing to post a bond or prove actual damage. This clause highlights the importance of adhering to the terms of the Franchise Agreement and the potential for immediate legal action if a breach occurs.