Are disputes relating to actions to obtain possession of the premises of the Franchised Business subject to mediation or arbitration for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.4 Exceptions.
Notwithstanding the requirements of Sections 20.2 or 20.3, the following claims shall not be subject to mediation or arbitration:
20.4.1 Franchisor's claims for injunctive or other extraordinary relief;
20.4.2 disputes and controversies arising from the Sherman Act, the Clayton Act or any other federal or state antitrust law;
20.4.3 disputes and controversies based upon or arising under the Lanham Act, as now or hereafter amended, relating to the ownership or validity of the Marks;
20.4.4 disputes and controversies relating to actions to obtain possession of the premises of the Franchised Business; and
20.4.5 enforcement of Franchisee's post-termination obligations, including but not limited to, Franchisee's non-competition covenants.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, disputes relating to actions to obtain possession of the premises of the Franchised Business are not subject to mediation or arbitration. This means that if Devon Creek seeks to take possession of the franchisee's business premises, such actions can be pursued directly through legal channels without first undergoing mediation or arbitration.
This exception to mediation and arbitration allows Devon Creek to expedite the process of regaining possession of a franchise location if necessary. For a prospective franchisee, this signifies that in cases where Devon Creek seeks to reclaim the premises, the franchisee may face immediate legal action rather than a potentially lengthy and less formal dispute resolution process.
It is important to note that while these specific disputes are exempt from mediation and arbitration, other disputes may still be subject to those processes as outlined in the franchise agreement. Franchisees should be aware of all dispute resolution procedures and exceptions detailed in the agreement.