Where will arbitration or mediation take place for dispute resolution related to a Crave franchise?

According to Crave's 2025 Franchise Disclosure Document, both arbitration and choice of forum for dispute resolution will take place in Wilmington, Delaware, subject to applicable state and federal law. This applies to disputes arising from both the standard Franchise Agreement and the Multi-Unit Development Agreement.

For a prospective Crave franchisee, this means that if a dispute arises that cannot be resolved through informal means, the franchisee may be required to travel to Wilmington, Delaware for arbitration or mediation. This could involve significant travel expenses and legal fees, regardless of where the franchise is located. Franchisees should factor these potential costs into their financial planning.

It is typical in franchising for the franchisor to specify a location for dispute resolution, often their home state. This is generally seen as favoring the franchisor, who is likely to have more experience with legal proceedings and greater resources. Franchisees should carefully consider this clause and consult with an attorney to understand their rights and obligations under the Franchise Agreement and Multi-Unit Development Agreement.