Are all disputes with Counselor Realty resolved by arbitration?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, not all disputes are resolved through arbitration. While Section 10.1 of the franchise agreement mandates binding arbitration for most disputes arising under or in relation to the agreement, there are exceptions. Specifically, the agreement stipulates that Counselor Realty retains the right to sue a franchisee in certain situations.
Counselor Realty may pursue legal action to collect money owed to them, protect or enforce their rights in the Marks, or to compel inspections or audits. This means that while a franchisee must generally resolve disputes through arbitration, Counselor Realty has the option to pursue litigation in specific instances, potentially placing the franchisee at a disadvantage.
Furthermore, Counselor Realty can seek injunctive relief in cases where a franchisee's breach of the agreement could cause irreparable damage to Counselor Realty or other franchisees. In such cases, Counselor Realty is entitled to an immediate injunction or a decree of specific performance, pending arbitration or adjudication, without needing to post a bond or prove actual damages. This allows Counselor Realty to quickly address breaches through the court system, adding another exception to the arbitration requirement.