Can a party seek injunctive relief from an arbitrator in a dispute with Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, in the event of a dispute, either party (Desi District or the franchisee) can seek injunctive relief from an arbitrator until an arbitration award is issued or the dispute is otherwise resolved. This means that during the arbitration process, a party can ask the arbitrator to issue an order that requires the other party to do something or refrain from doing something, in order to prevent irreparable harm.
Additionally, either party can seek interim or provisional injunctive relief from a court having jurisdiction, without giving up their right to arbitrate the dispute. This provides an alternative avenue for seeking immediate injunctive relief if necessary. This is a common practice in franchising, as it allows parties to protect their interests while still pursuing arbitration.
However, Desi District or the franchisee can bring a claim involving an alleged infringement of any of Desi District's intellectual property rights in a court authorized to hear such claims. This exception allows Desi District to protect its brand and proprietary information through court action, which may be more efficient or effective than arbitration in certain cases.