If Crisp & Green seeks injunctive relief, is it subject to the arbitration clause?

According to Crisp & Green's 2024 Franchise Disclosure Document, the brand is not subject to the arbitration clause if it seeks injunctive relief against a franchisee. The FDD specifies that all disputes must be arbitrated in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN, except for claims for injunctive relief. This means that Crisp & Green retains the right to pursue injunctive relief in court rather than through arbitration.

For a prospective Crisp & Green franchisee, this is an important consideration. It means that while most disputes will be handled through arbitration, which is generally a faster and less expensive process than litigation, Crisp & Green can still seek immediate court intervention in cases where they believe a franchisee is causing irreparable harm to the brand or violating the franchise agreement in a way that requires urgent action. Injunctive relief might be sought, for example, to prevent a franchisee from using Crisp & Green's trademarks improperly or operating a competing business during the term of the franchise agreement.

This provision is relatively common in franchise agreements, as it allows the franchisor to protect its brand and system from immediate harm. However, franchisees should be aware of this clause and understand the circumstances under which Crisp & Green might seek injunctive relief, as it could result in court proceedings rather than arbitration. Franchisees should also note that the choice of forum for disputes, whether arbitrated or litigated, is the city closest to Crisp & Green's corporate headquarters, which is Wayzata, MN, subject to applicable state law.