What is a Desi District franchisee's obligation if they are involved in a legal action or investigation?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
- 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 Desi District Franchise Group'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 Desi District Franchise Group'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 page 52)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, franchisees have specific obligations during arbitration or litigation. Unless the Franchise Agreement has been terminated, both Desi District and the franchisee must continue to comply with the agreement and fulfill their respective obligations throughout the legal process.
In any controversy or claim arising from the Franchise Agreement, both parties waive the right to punitive damages or monetary damages exceeding the prevailing party's actual losses, unless such damages are expressly authorized by federal statute or the agreement itself. All claims must be resolved on an individual basis, with both parties waiving any right to participate in class actions. Any arbitration or legal action related to the agreement must be initiated within two years from the date the conduct or event forming the basis of the action is discovered. This time limitation 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 Desi District's headquarters is located. If there is no federal jurisdiction, the proceedings will occur in the court of record of the state and county where Desi District's headquarters is located. The non-prevailing party in any legal proceeding, including arbitration, must cover the prevailing party's attorney fees, costs, and other legal expenses. The prevailing party is defined as the party that obtained substantial relief on the central litigated issues.