Where must mediation take place for a Claim against Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ntial information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- 23.3 Arbitration. In the event any dispute involving a Claim is not resolved through mediation within the sixty (60) day period referenced in Section 23.2 above, Franchisee must submit such Claim to arbitration in Jefferson County or Denver County, State of Colorado, in accordance with the Commercial Arbitration Rules of the American Arbitration Association and judgment upon the award may be entered in any court having jurisdiction thereof. The arbitration will be held before, and decided by, a panel of three (3) arbitrators. Franchisor will select one (1) arbitrator, Franchisee will select one (1) arbitrator, and those two (2) arbitrators will then select the third arbitrator. If the arbitrators selected by Franchisor and Franchisee cannot agree on the third arbitrator, then all three (3) arbitrators will be selected in accordance with the rules of the American Arbitration Association, which means that the arbitrators selected by Franchisor and Franchisee will not serve as arbitrators for such Claim. The parties hereto expressly consent to personal jurisdiction in the State of Colorado and agree that such court(s) will have exclusive jurisdiction over any determination of the "prevailing party" in accordance with such issues not subject to arbitration.
- 23.3.1 Authority of Arbitrators. The arbitrators will not have any authority to add, delete, or modify in any manner, the terms and provisions of this Agreement. All findings, judgments, and awards will be limited to the dispute set forth in the written demands. All decisions by the arbitrators will be made in writing not later
than ten (10) days after the hearing is complete.
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 is not resolved through mediation, the franchisee must submit the claim to arbitration in Jefferson County or Denver County, State of Colorado. This arbitration will follow the Commercial Arbitration Rules of the American Arbitration Association. The judgment upon the arbitration award can be entered in any court with jurisdiction.
Mediation is a process where a neutral third party helps the franchisor and franchisee reach a mutually agreeable resolution. However, certain disputes are excluded from mandatory mediation, including those 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.
If mediation fails, the claim proceeds to arbitration, which will be decided by a panel of three arbitrators. Craters & Freighters will select one arbitrator, the franchisee will select another, and those two arbitrators will choose the third. If they cannot agree on the third arbitrator, all three arbitrators will be selected according to the rules of the American Arbitration Association. Both parties expressly consent to personal jurisdiction in the State of Colorado, and the courts in Colorado will have exclusive jurisdiction over any determination of the "prevailing party" in issues not subject to arbitration.