What rules govern the arbitration process for Fly To Fit franchise disputes?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
effect after this Agreement ends.
- 16.2 Assumption. An Indemnitee 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. 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.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, any controversy or claim between Fly To Fit and the franchisee, including disputes relating to the franchise agreement, will be resolved through arbitration. The arbitration will be administered by the American Arbitration Association, following its Commercial Arbitration Rules, including the Optional Rules for Emergency Measures of Protection. The location for arbitration will be the city and state where Fly To Fit's headquarters is located.
However, there are exceptions to this arbitration rule. Either party may seek injunctive relief from an arbitrator or a court, without waiving the right to arbitrate. Fly To Fit may also bring claims involving alleged infringement of its intellectual property rights in a court authorized to hear such claims.
All documents, information, and results pertaining to any arbitration or lawsuit will be kept confidential, unless disclosure is required by law or for Fly To Fit to comply with laws and regulations related to franchise sales. Both Fly To Fit and the franchisee must continue to comply with the franchise agreement and perform their obligations during any arbitration or litigation process, unless the agreement has been terminated. The parties also agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis. Any arbitration or other legal action arising from or related to the Franchise Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action. The time limit does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the marks. In any legal proceeding (including arbitration) related to the Franchise Agreement, the non-prevailing party shall pay the prevailing party's attorney fees, costs and other expenses of the legal proceeding.