For a Devon Creek franchise, are disputes based upon the Sherman Act subject to arbitration?

According to the 2024 Devon Creek Franchise Disclosure Document, disputes arising from the Sherman Act are not subject to mediation or arbitration. This means that if a dispute arises relating to the Sherman Act, either the franchisee or Devon Creek can pursue the matter in court rather than being required to go through mediation or binding arbitration.

This exception to mediation or arbitration also applies to disputes and controversies arising from the Clayton Act or any other federal or state antitrust law. It also applies to disputes and controversies based upon or arising under the Lanham Act relating to the ownership or validity of the Marks, disputes and controversies relating to actions to obtain possession of the premises of the Franchised Business, and enforcement of Franchisee's post-termination obligations, including but not limited to, Franchisee's non-competition covenants.

This clause benefits a prospective Devon Creek franchisee by ensuring the ability to pursue certain legal claims in court. Without this clause, franchisees might be limited to arbitration, which may not always provide the same level of legal recourse as court proceedings. It is fairly common to see clauses that exclude certain types of disputes from arbitration in franchise agreements.