Can a party seek emergency measures of protection during arbitration involving a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
emnitee 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.
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. Desi District utilizes the American Arbitration Association's Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. This means that during an arbitration, either party can seek emergency measures of protection.
Furthermore, either party may seek injunctive relief from the arbitrator until the arbitration award is given or the controversy is resolved. A party can also seek interim or provisional injunctive relief from a court without giving up any right to arbitrate.
However, Desi District retains the right to pursue intellectual property claims in a court authorized to hear such claims, as opposed to arbitration. This exception is important for prospective franchisees to understand, as it outlines a specific circumstance where Desi District may bypass arbitration and pursue legal action directly in court.