Can either party seek emergency measures of protection during arbitration of a Crown Gold Exchange dispute?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
he defense of any Action subject to this indemnification, and control all aspects of defending the Action, including negotiations and settlement, at Franchisee's expense. Such an undertaking shall not diminish Franchisee's obligation to indemnify the Indemnitees.
ARTICLE 17. DISPUTE RESOLUTION
17.1 Arbitration.
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsection (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
- (b) Location.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, both Crown Gold Exchange and the franchisee have the option to seek emergency measures of protection during an arbitration dispute. The franchise agreement specifies that disputes will be resolved through arbitration administered by the American Arbitration Association, following its Commercial Arbitration Rules, which include the Optional Rules for Emergency Measures of Protection. This means that either party can request urgent interim relief from the arbitrator while the arbitration is ongoing.
Furthermore, either party can seek injunctive relief from the arbitrator until a final arbitration award is issued or the dispute is otherwise resolved. This allows for immediate action to prevent potential harm or damage during the arbitration process. Additionally, both Crown Gold Exchange and the franchisee retain the right to seek interim or provisional injunctive relief from a court with jurisdiction, without giving up their right to arbitrate the matter.
This multi-avenue approach to dispute resolution ensures that both parties have access to various mechanisms for protecting their interests during a dispute. The ability to seek emergency measures of protection can be crucial in situations where immediate action is necessary to prevent irreparable harm. This is a fairly standard clause in franchise agreements, as it provides a safeguard for both the franchisor and franchisee during potentially lengthy arbitration proceedings.