Are there any exceptions to the mediation requirement for Dog Haus disputes?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.5 Injunctive Relief.
Franchisee acknowledges and agrees that irreparable harm could be caused to Franchisor by Franchisee's violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) Franchisee's use of the Dog Haus Marks and Confidential Information (including any proprietary software used in connection with the Franchised Restaurant); (ii) the interm covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) Franchisee's obligations on termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Dog Haus Marks, as now or hereafter amended; (v) disputes and controversies involving enforcement of the Franchisor's rights with respect to confidentiality under this Agreement; and (vi) prohibit any act or omission by Franchisee or its employees that constitutes a violation of Applicable Law, threatens Franchisor's franchise system or threatens other franchisees of Franchisor.
Franchisee's only remedy if such an injunction is entered will be the dissolution of the injunction, if appropriate, and Franchisee waives all damage claims if the injunction is wrongfully issued.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
The 2025 Dog Haus Franchise Disclosure Document outlines specific instances where Dog Haus can seek injunctive relief in court without being subject to mediation or arbitration. Dog Haus is entitled to seek restraining orders or temporary or permanent injunctions in a court of competent jurisdiction, without bond. This enables Dog Haus to protect its brand and system from potential harm caused by franchisees. These exceptions allow Dog Haus to act swiftly to prevent further damage.
Specifically, Dog Haus can pursue injunctive relief to enforce provisions related to a franchisee's use of the Dog Haus Marks and Confidential Information, violations of restrictive covenants (such as non-compete agreements), and obligations upon termination or expiration of the franchise agreement. Additionally, Dog Haus can seek injunctive relief for disputes arising under the Lanham Act, which protects trademarks, or for controversies involving the enforcement of confidentiality rights. Dog Haus can also act against franchisee actions that violate applicable laws or threaten the franchise system or other franchisees.
This approach provides Dog Haus with a legal avenue to address urgent situations that could significantly impact the brand's reputation, trade secrets, or the overall franchise network. Franchisees should be aware of these exceptions, as they could face immediate legal action from Dog Haus without prior mediation or arbitration in these specific circumstances. This clause emphasizes the importance of franchisees adhering to the franchise agreement and respecting Dog Haus's intellectual property and system standards.