Does Fat Shack have the option to bring actions related to the Marks in court or arbitration?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
ompany is located.
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- Arbitration. Any and all controversies, disputes or claims between FSI, its subsidiaries and affiliated companies or their shareholders, members, managers, officers, directors, agents, employees and attorneys (in their representative capacity); Company, its shareholders, members, managers, officers,
directors, agents and employees; and/or Associate arising out of or related to this Agreement or the validity hereof shall be submitted for binding arbitration;
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack has the option to bring actions for injunctive relief related to trademark issues in either a court of competent jurisdiction or in arbitration. This is outlined in the section regarding arbitration, which details the process for resolving disputes between Fat Shack, its affiliates, and franchisees.
Specifically, the FDD states that any controversies, disputes, or claims arising out of or related to the franchise agreement must be submitted for binding arbitration. However, there is an exception for actions seeking injunctive relief, particularly those related to Section 7 of the agreement. In these cases, Fat Shack can choose to pursue the matter in court or through arbitration.
This clause provides Fat Shack with flexibility in protecting its brand and trademarks. Injunctive relief is a legal remedy that can stop someone from continuing an action, such as trademark infringement, which can be crucial for maintaining brand integrity. The option to choose between court and arbitration allows Fat Shack to select the forum that best suits the specific circumstances of the case, potentially leading to quicker and more effective resolution of trademark-related disputes.