Under what circumstances can Fly To Fit bring a claim in court instead of arbitration?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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- (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.
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 generally resolve disputes through arbitration. However, Fly To Fit can bring a claim involving an alleged infringement of its intellectual property rights in a court authorized to hear such claims. This means Fly To Fit does not have to go through arbitration if they believe someone is infringing on their trademarks, copyrights, or other intellectual property.
Fly To Fit's decision to pursue intellectual property claims in court allows them to seek remedies specific to intellectual property law, such as injunctions and expedited legal processes, which may not be as readily available or effective through arbitration. This is a common practice, as intellectual property disputes often require specialized legal expertise and judicial intervention to protect brand assets and prevent further infringement.
For any legal proceeding not required to be submitted to arbitration, the FDD specifies that such proceedings will occur in the United States District Court where Fly To Fit's headquarters is located. If there is no federal jurisdiction, the proceedings will occur in the court of record of the state and county where Fly To Fit's headquarters is located. This ensures that any court actions will take place in a location convenient for Fly To Fit, and the franchisee consents to the jurisdiction of those courts.