What rules govern the arbitration process for Crown Gold Exchange franchise disputes?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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. The place of arbitration shall be the city and state where Crown Gold Franchising's headquarters are located.
- (c) Injunctive Relief. Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either party also may, without waiving any remedy or right to arbitrate under this Agreement, seek from any court having jurisdiction any interim or provisional injunctive relief.
- (d) Intellectual Property Claims. Either party may bring a claim involving an alleged infringement of any of Crown Gold Franchising's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
- (e) Confidentiality. All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for Crown Gold Franchising to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation. Unless this Agreement has been terminated, Crown Gold Franchising and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action. The foregoing time limit does not apply to claims (i) by one party related to non-payment under this Agreement by the other party, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
- 17.5 Venue Other Than Arbitration. For any legal proceeding not required to be submitted to arbitration, the parties agree that any such legal proceeding will be brought in the United States District Court where Crown Gold Franchising's headquarters is then located. If there is no federal jurisdiction over the dispute, the parties agree that any such legal proceeding will be brought in the court of record of the state and county where Crown Gold Franchising's headquarters is then located. Each party consents to the jurisdiction of such courts and waives any objection that it, he or she may have to the laying of venue of any proceeding in any of these courts.
- 17.6 Legal Costs. In any legal proceeding (including arbitration) related to this Agreement or any guaranty, the non-prevailing party shall pay the prevailing party's attorney fees, costs and other expenses of the legal proceeding. "Prevailing party" means the party, if any, which prevailed upon the central litigated issues and obtained substantial relief.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, any controversy or claim between the parties, including those arising from the Franchise Agreement, will be resolved through arbitration. This arbitration will be administered by the American Arbitration Association, following its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. The judgment on the arbitrator's award can be entered in any court with jurisdiction. The location for arbitration will be the city and state where Crown Gold Franchising's headquarters is located.
However, there are exceptions to this arbitration rule. Either party can seek injunctive relief from an arbitrator or a court without waiving the right to arbitrate. Claims involving alleged infringement of Crown Gold Franchising's intellectual property rights can be brought in a court authorized to hear such claims. All documents, information, and results related to any arbitration or lawsuit will be kept confidential, unless disclosure is required by law or for Crown Gold Franchising to comply with laws and regulations applicable to the sale of franchises.
During arbitration or litigation, both Crown Gold Franchising and the franchisee must continue to comply with the Franchise Agreement and perform their respective obligations, unless the agreement has been terminated. Each party waives the right to punitive or other monetary damages not measured by the prevailing party's actual damages, except for damages expressly authorized by federal statute or the Franchise Agreement. Furthermore, all claims will be arbitrated, litigated, or otherwise resolved on an individual basis, with both parties waiving any right to participate in class actions.
Any arbitration or legal action related to the Franchise Agreement must be initiated within two years from the date the party discovers the conduct or event that forms the basis of the action. This time limit does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the marks. For legal proceedings not subject to arbitration, the venue will be the United States District Court where Crown Gold Franchising's headquarters is located, or if there is no federal jurisdiction, the court of record of the state and county where Crown Gold Franchising's headquarters is located. In any legal proceeding, including arbitration, the non-prevailing party will pay the prevailing party's attorney fees, costs, and other expenses.