What is the required first step in resolving a Claim against Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary, Franchisor and Franchisee will each have the right in a proper case to obtain temporary or preliminary injunctive relief from a court of competent jurisdiction in connection with any Claim; provided, however, that the parties must contemporaneously submit their dispute involving such Claim for mediation and arbitration on the merits in accordance with Section 23.2 and Section 23.3, respectively.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
Based on the 2025 Craters & Freighters Franchise Disclosure Document, if a franchisee or Craters & Freighters seeks temporary or preliminary injunctive relief from a court regarding a claim, the parties involved must simultaneously submit their dispute for mediation and arbitration on the merits. This process must align with the guidelines outlined in Section 23.2 and Section 23.3 of the franchise agreement.
This means that even when seeking immediate court intervention, such as an injunction, Craters & Freighters requires franchisees to also engage in mediation and arbitration to resolve the underlying claim. This dual approach ensures that while urgent legal remedies are pursued, alternative dispute resolution methods are also utilized to find a comprehensive solution.
It's important to note that this requirement for mediation and arbitration applies specifically when a party seeks injunctive relief. The FDD does not specify the initial steps required to resolve a claim in situations where injunctive relief is not being pursued. A prospective franchisee should seek clarification from Craters & Freighters regarding the standard claim resolution process outside of these specific circumstances.