factual

Can Fly To Fit or the franchisee seek injunctive relief related to a dispute?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (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.

Source: Item 22 — CONTRACTS (FDD page 44)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, both Fly To Fit and the franchisee have the ability to seek injunctive relief in the event of a dispute. Specifically, either party can apply to an arbitrator for injunctive relief until an arbitration award is issued or the dispute is otherwise resolved. This means that during the arbitration process, either party can ask the arbitrator to order the other party to take certain actions or refrain from certain actions to prevent immediate and irreparable harm.

Furthermore, Fly To Fit or the franchisee can seek interim or provisional injunctive relief from any court with jurisdiction, without giving up their right to arbitrate the dispute. This allows either party to quickly seek a court order to protect their interests while the arbitration process is ongoing. This is a common practice in franchising, as it allows parties to address urgent issues while still adhering to the arbitration agreement.

However, the FDD also specifies that either party may bring a claim involving an alleged infringement of any of Fly To Fit's intellectual property rights in a court authorized to hear such claims. This means that disputes related to intellectual property infringement may be handled outside of arbitration, directly in a court of law. This is an important consideration for prospective franchisees, as it clarifies the avenues available for resolving different types of disputes.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.