Does the arbitration clause in the Crave franchise agreement survive termination or non-renewal of the agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement provides that disputes are resolved through arbitration.
A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law.
In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
The 2025 Crave FDD excerpts provided do not explicitly state whether the arbitration clause within the franchise agreement survives termination or non-renewal. However, the document does mention that disputes are resolved through arbitration.
Item 23 includes addenda required by the state of Maryland. One addendum states that the Franchise Agreement provides that disputes are resolved through arbitration. It also notes a Maryland franchise regulation stating that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. The addendum further acknowledges a dispute as to whether the forum selection requirement is legally enforceable in light of the Federal Arbitration Act.
To fully understand the scope and enforceability of the arbitration clause, especially regarding its survival after termination or non-renewal, a prospective Crave franchisee should consult the complete franchise agreement and seek legal counsel. They should ask Crave's franchisor directly about this specific aspect of the arbitration clause and how it has been interpreted or enforced in past disputes.