What arbitration rules govern disputes involving Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
6.2 Assumption.** An Indemnitee may elect to assume the 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. The place of arbitration shall be the city and state where Desi District Franchise Group'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 Desi District Franchise Group'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 Desi District Franchise Group to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation. Unless this Agreement has been terminated, Desi District Franchise Group 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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, disputes between the parties will be resolved through arbitration administered by the American Arbitration Association (AAA) in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. This means that instead of going to court, disputes will be settled by a neutral arbitrator following the AAA's established procedures. A court can then enforce the arbitrator's decision. The location for arbitration will be the city and state where Desi District Franchise Group's headquarters is located.
However, there are exceptions to this arbitration requirement. Either party can seek injunctive relief from an arbitrator or a court to protect their rights while the arbitration is ongoing. Additionally, Desi District Franchise Group can bring claims involving the infringement of its intellectual property rights in a court authorized to hear such claims.
All documents, information, and results pertaining to any arbitration or lawsuit will be kept confidential, except when disclosure is required by law or for Desi District Franchise Group to comply with franchise regulations. Franchisees must continue to comply with the Franchise Agreement and perform their obligations during any arbitration or litigation process, unless the agreement has been terminated. Any arbitration or other legal action must be initiated within two years of discovering the event that leads to the action, with exceptions for claims related to non-payment, indemnity, or unauthorized use of confidential information or trademarks. The parties also waive the right to participate in class action lawsuits and agree that claims will be resolved on an individual basis.