When does the 60-day period for mediation settlement begin for Craters & Freighters disputes?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Craters & Freighters' 2025 Franchise Disclosure Document, if a dispute arises that requires mediation, the 60-day period to reach a settlement begins on the date the franchisee submits the claim to the American Arbitration Association (AAA). This means that the clock starts ticking as soon as the formal claim is lodged with the AAA, giving both parties a defined timeframe to resolve the issue through mediation.
It is important to note that not all disputes require mediation. Specifically, any issues concerning federally protected intellectual property rights in the Marks, the System, or in any Trade Secrets, Confidential Information, or other confidential information; any of the restrictive covenants contained in the Franchise Agreement; and any of the franchisee's payment obligations under the Agreement are not required to be submitted to mediation.
If the dispute is not resolved through mediation within this 60-day period, the franchisee must submit the claim to arbitration in Jefferson County or Denver County, Colorado. This step ensures that unresolved issues proceed to a more formal resolution process. Both mediation and arbitration costs are to be shared, with each party bearing their own mediation costs while the fees of the mediator are split equally between Craters & Freighters and the franchisee.