Can the arbitrator stay the termination of the Kitchen Solvers agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, it is mutually agreed that in the event of a breach or threatened breach of any of the terms of this Agreement the other party will forthwith be entitled to seek an injunction restraining such breach and/or to a decree of specific performance, without showing or proving any actual damage, together with recovery of reasonable attorneys' fees and other costs incurred in obtaining said equitable relief, until such time as a final and binding determination is made by the arbitrators.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, an addendum for Minnesota franchisees addresses the possibility of injunctive relief in the event of a breach or threatened breach of the franchise agreement. Specifically, in the event of a breach or threatened breach of any terms of the agreement, Kitchen Solvers is entitled to seek an injunction to stop the breach while awaiting a final determination by the arbitrators.
This means that Kitchen Solvers can pursue legal action to prevent a franchisee from violating the agreement's terms while the arbitration process is ongoing. This remedy is available without Kitchen Solvers having to demonstrate actual damages. Additionally, Kitchen Solvers can recover reasonable attorney's fees and other costs associated with obtaining the injunction.
For a prospective Kitchen Solvers franchisee in Minnesota, this clause highlights the importance of adhering to the franchise agreement. If a franchisee violates the agreement, Kitchen Solvers can quickly seek an injunction, potentially disrupting the franchisee's business operations until the arbitration is resolved. The franchisee may also be responsible for Kitchen Solvers' legal costs if the injunction is granted. This provision aims to protect Kitchen Solvers' interests and ensure compliance with the franchise agreement during the arbitration process.