When does the 60-day mediation period begin for a Craters & Freighters dispute?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Each party will bear its own cost of mediation and Franchisor and Franchisee will share mediator fees equally.
Each party will use best efforts to resolve the dispute involving the Claim through mediation.
The parties hereto will have sixty (60) days to reach a settlement; such sixty (60) day period will begin on the date that Franchisee has submitted such claim to the AAA.
Notwithstanding the foregoing, for the sake of clarity, any controversy, dispute, or claim concerning the following will not be required to be submitted to mediation: (i) any federally protected intellectual property rights in the Marks, the System, or in any Trade Secrets, Confidential Information, or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, if a dispute arises, the 60-day mediation period begins on the date the franchisee submits a claim to the American Arbitration Association (AAA). During this 60-day period, both Craters & Freighters and the franchisee are expected to make their best efforts to resolve the dispute through mediation. Each party is responsible for their own mediation costs, and they will equally share the mediator's fees.
However, it's important to note that certain types of disputes are excluded from this mediation requirement. Specifically, any issues concerning federally protected intellectual property rights in the Craters & Freighters' trademarks, the System, trade secrets, confidential information, restrictive covenants within the agreement, or the franchisee's payment obligations are not subject to mandatory mediation. These types of disputes may proceed directly to other resolution methods.
If the dispute is not resolved through mediation within the 60-day period, the franchisee is then required to submit the claim to arbitration. This arbitration must take place in Jefferson County or Denver County, Colorado, following the Commercial Arbitration Rules of the American Arbitration Association. The decision reached through arbitration can be enforced in any court with the appropriate jurisdiction. Understanding this process is crucial for a prospective franchisee, as it outlines the steps and timelines for resolving potential conflicts with Craters & Freighters.