Does the Learningrx agreement allow for injunctive relief as a remedy in arbitration?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
for arbitration made hereunder. The parties shall each select one arbitrator and the two selected arbitrators shall select a single arbitrator to hear the matter. The parties' consent to the use of the services of Judicial Arbitration Group, Inc. or its successor or the American Arbitration Association to administer the arbitration. The arbitration shall be conducted in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association. The arbitrator will have the right to award any proper relief, including money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief and attorneys' fees and costs; provided, however, the Parties expressly agree that the arbitrator may not award any Party more than Fifty Thousand and 00/100 Dollars ($50,000.00) in damages, including costs and attorneys' fees, and provided however, the arbitrator will not be empowered to award, nor will any party be entitled to receive, any damages or awards that are barred by the "Limitation of Claims" Section of this Agreement. The award and decision of the arbitrator will be conclusive and b
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the arbitrator has the right to award injunctive relief. The document states that the arbitrator can award any proper relief, including money damages, specific performance, injunctive relief, and attorneys' fees and costs. However, the arbitrator cannot award any party more than $50,000 in damages, including costs and attorneys' fees.
This means that if a dispute between Learningrx and a franchisee goes to arbitration, the arbitrator is empowered to issue an order requiring a party to do or stop doing something, in addition to or instead of awarding monetary damages. Injunctive relief is a powerful remedy that can be critical in protecting Learningrx's brand standards, trade secrets, and customer relationships.
However, the agreement also specifies that the arbitrator will not be empowered to award, nor will any party be entitled to receive, any damages or awards that are barred by the "Limitation of Claims" Section of this Agreement. The arbitrator's decision will be conclusive and binding, and judgment upon the award may be entered in any court of competent jurisdiction. The arbitrator cannot amend or modify the terms of the agreement and must follow its plain meaning. The arbitrator must also issue an award no later than 90 days after the commencement of the arbitration hearing, unless the parties agree otherwise.