What disputes are specifically excepted from arbitration under the Carvel franchise agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as stated in Section 19.1.D. (Excepted Disputes) of this Agreement, all disputes between you, your affiliates, Owners, guarantors, and/or your or your affiliates' officers, directors, and employees, on the one hand, and us, our affiliates, and/or our or our affiliates' officers, directors and employees, on the other hand, relating to this Agreement, our relationship with you, or your Franchised Business, will be resolved by binding arbitration.
You can enter into litigation with us in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, as long as the nature of the litigation is not the type of dispute, controversy, claim, action or proceeding which would be subject to arbitration under the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
Based on the 2025 Carvel Franchise Disclosure Document, Section 19.1.A states that all disputes will be resolved by binding arbitration, except as stated in Section 19.1.D (Excepted Disputes). However, the document does not specify what those excepted disputes are.
In Maryland, you can enter into litigation with Carvel for claims arising under the Maryland Franchise Registration and Disclosure Law, as long as the nature of the litigation is not the type of dispute, controversy, claim, action or proceeding which would be subject to arbitration under the Franchise Agreement.
Because the specific disputes excepted from arbitration are not detailed in the provided FDD excerpts, prospective Carvel franchisees should ask the franchisor for a comprehensive list of disputes that are not subject to arbitration. Understanding these exceptions is crucial for assessing the potential costs and risks associated with resolving conflicts that may arise during the franchise term.