What rules govern the mediation process for Crab N Spice franchise disputes?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
17.1 Mediation.
- (a) Disputes Subject to Mediation. Except as expressly provided in subsection (c), any controversy or claim arising out of or relating to this Agreement (including its formation) shall be resolved by mediation administered by the American Arbitration Association in accordance with its Rules.
- (b) Location. The place of mediation shall be the city and state where CNS Franchising's headquarters are located.
- (c) Confidentiality. All documents, information, and results pertaining to any mediation will be confidential, except as required by law or as required for CNS Franchising to comply with laws and regulations applicable to the sale of franchises.
- (d) Performance During Arbitration or Litigation. Unless this Agreement has been terminated, CNS Franchising and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the mediation process.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, disputes arising from the franchise agreement will be resolved through mediation. Except when expressly provided, any controversy or claim will be resolved by mediation administered by the American Arbitration Association in accordance with its rules.
The location for mediation will be the city and state where CNS Franchising's headquarters are located. All documents, information, and results pertaining to any mediation will be confidential, except as required by law or as required for CNS Franchising to comply with laws and regulations applicable to the sale of franchises.
Unless the Franchise Agreement has been terminated, both CNS Franchising and the franchisee must continue to comply with the agreement and perform their obligations during the mediation process. In any dispute, each party waives the right to punitive or other monetary damages not measured by the prevailing party's actual damages, unless such damages are expressly authorized by federal statute or the agreement itself. The parties also agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, waiving any right to participate in a class action.