Does the Fly To Fit franchise agreement specify which arbitration rules apply?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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. 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 Fly To Fit Franchise'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 Fly To Fit Franchise to comply with laws and regulations applicable to the sale of franchises.
- (f) Performance During Arbitration or Litigation.
Unless this Agreement has been terminated, Fly To Fit Franchise and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
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 specifies that any disputes between the parties, including those related to the agreement's formation or any questions of arbitrability, will be resolved through arbitration. This arbitration is to be administered by the American Arbitration Association (AAA). The specific rules that apply are the AAA's Commercial Arbitration Rules, which include the Optional Rules for Emergency Measures of Protection.
This means that a Fly To Fit franchisee, in the event of a dispute with the franchisor, must go through arbitration as the primary means of resolution, adhering to the AAA's established procedures. This process is designed to provide a structured and neutral environment for resolving conflicts outside of the traditional court system. The judgment on the arbitrator's award can be entered in any court with jurisdiction, making the arbitration decision legally binding.
The agreement also specifies that the location for arbitration will be the city and state where Fly To Fit Franchise's headquarters are located. This could present a logistical challenge for franchisees who are located far from the headquarters, as they may incur travel and accommodation costs to attend the arbitration proceedings. However, either party can seek injunctive relief from the arbitrator or a court during the arbitration process, and intellectual property claims can be brought 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 Fly To Fit Franchise to comply with laws and regulations applicable to the sale of franchises. Both Fly To Fit and the franchisee are obligated to continue performing their duties under the agreement during any arbitration or litigation, unless the agreement has been terminated.