Does the Fly To Fit franchise agreement allow for exceptions to mandatory arbitration?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
ndemnitee may elect to assume the defense of any Action subject to this indemnification, and control all aspects of defending the Action, including negotiations and settlement, at Franchisee's expense. Such an undertaking shall not diminish Franchisee's obligation to indemnify the Indemnitees.
ARTICLE 17. DISPUTE RESOLUTION
17.1 Arbitration.
- (a) Disputes Subject to Arbitration. Except as expressly provided in subsection (c) and (d), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation and including any question of arbitrability) shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
- (b) Location. The place of arbitration shall be the city and state where Fly To Fit Franchise'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.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchise agreement mandates arbitration for most disputes, but it does outline specific exceptions.
Specifically, subsection (c) allows either party to seek injunctive relief from an arbitrator or a court without waiving the right to arbitrate, which provides an avenue for immediate action in certain situations. Subsection (d) states that either party can bring claims regarding alleged infringement of Fly To Fit's intellectual property rights in a court authorized to hear such claims.
These exceptions mean that while arbitration is the primary method for resolving disputes, franchisees and Fly To Fit can pursue certain legal actions, particularly those involving intellectual property or requests for immediate injunctive relief, in a court of law. This offers some flexibility in how disputes are handled, depending on the nature of the claim.