Does the Endless Summer Sweets franchise agreement permit class action lawsuits or arbitrations?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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- (b) Location. The place of arbitration shall be the city and state where Franchisor'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. 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 Franchisor's intellectual property rights in a court authorized to hear such claims under Section 17.5 of this Agreement.
- (e) Confidentiality. All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for Franchisor to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, franchisees are not permitted to participate in class action lawsuits against the company. The agreement specifies that any claims must be resolved on an individual basis, and franchisees waive any right to act on a class-wide basis.
Regarding arbitrations, the Endless Summer Sweets agreement states that either party can seek interim or provisional injunctive relief from a court without waiving their right to arbitrate. This means that while disputes are generally intended to be resolved through arbitration, a party can still go to court for urgent matters like a temporary restraining order. The agreement also allows either party to bring claims involving alleged infringement of Endless Summer Sweets' intellectual property rights in a court authorized to hear such claims.
All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for Endless Summer Sweets to comply with laws and regulations applicable to the sale of franchises. Unless the agreement has been terminated, both Endless Summer Sweets and the franchisee must continue to comply with the agreement and perform their obligations during any arbitration or litigation process.