Are disputes regarding Craters & Freighters' intellectual property required to be submitted to mediation?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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, disputes concerning federally protected intellectual property rights are not required to be submitted to mediation. This includes rights in the Marks, the System, or in any Trade Secrets, Confidential Information, or other confidential information.
This means that Craters & Freighters reserves the right to pursue legal action directly, without first attempting mediation, to protect its intellectual property. For a potential franchisee, this highlights the importance of understanding and respecting Craters & Freighters' intellectual property rights, as any infringement could lead to immediate legal action.
In addition to intellectual property disputes, Craters & Freighters also does not require mediation for disputes involving restrictive covenants in the franchise agreement or the franchisee's payment obligations. This is a fairly common practice in franchising, as franchisors typically want to expedite the resolution of these critical issues.