Does the Kitchen Solvers agreement allow for claims regarding the violation of trademarks to be excluded from mediation or arbitration?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Exceptions to Mediation/Arbitration. Notwithstanding anything contained in Sections 13.A.1 or 13.A.2 to the contrary, the parties agree that the following claims will not be subject to mediation or arbitration: Any controversy, dispute, or claim that concerns an allegation that you and/or any Personal Guarantor has violated (or threatens to violate, or poses an imminent risk of violating): (i) any provision relating to use of the Trademarks, the System or any Confidential Information; (ii) any federally or state protected intellectual property rights in the Trademarks, the System, or in any Confidential Information; (iii) any of the restrictive covenants contained in this Agreement, including the confidentiality and non-competition covenants; or (iv) any claims to collect past due amounts owed to us and/or our affiliates.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, certain claims are excluded from mediation or arbitration. Specifically, any claim alleging a franchisee or guarantor has violated or threatens to violate provisions related to the use of Kitchen Solvers' trademarks, the System, or confidential information is not subject to mediation or arbitration. This also applies to violations of federally or state-protected intellectual property rights in the Trademarks, the System, or confidential information.
This means that Kitchen Solvers can pursue legal action directly in court for trademark or intellectual property violations without first going through mediation or arbitration. This is a significant advantage for the franchisor, as it allows them to quickly address and stop any unauthorized use of their brand assets. For a franchisee, this highlights the importance of strictly adhering to the brand's trademark guidelines and protecting confidential information, as violations could lead to immediate legal action.
Franchisors commonly reserve the right to bypass mediation/arbitration for intellectual property and trademark disputes. This is because these assets are crucial to the brand's identity and value. Swift action is often necessary to prevent damage to the brand's reputation and market position. The Kitchen Solvers franchise agreement reflects this common practice, ensuring the franchisor can act decisively to protect its intellectual property rights.
In addition to trademark and intellectual property claims, Kitchen Solvers also excludes claims related to violations of restrictive covenants (like confidentiality and non-competition agreements) and claims to collect past due amounts from mediation or arbitration. This further broadens the scope of disputes that Kitchen Solvers can pursue directly in court, providing them with more flexibility in enforcing the franchise agreement.