In the event that negotiation fails to resolve a dispute with Crave, where will binding arbitration take place?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent we elect to enforce the provisions of this Agreement by judicial process and injunction in our sole discretion, all disputes, claims and controversies between the parties arising under or in connection with this Agreement or the making, performance or interpretation thereof (including claims of fraud in the inducement and other claims of fraud and the arbitrability of any matter) which have not been settled through negotiation will be settled by binding arbitration within Wilmington, Delaware, under the authority of the statutes of Delaware (the "Statutes"). The arbitrator(s) will have a minimum of five (5) years of experience in franchising or distribution law and will have the right to award specific performance of this Agreement. If the parties cannot agree upon a mutually agreeable arbitrator, then the arbitration shall be conducted as per the selection method set forth in the Statutes. To the extent such rules are not inconsistent with the provisions of this arbitration provision or the Statutes, the proceedings will be conducted under the commercial arbitration rules of the American Arbitration Association. The decision of the arbitrator(s) will be final and binding on all parties. This Section will survive termination or any non-extension or refusal of a successor term under any circumstances. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction thereof. During the pendency of any arbitration proceeding, you and we shall fully perform our respective obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, binding arbitration to settle disputes will take place in Wilmington, Delaware. This arbitration is conducted under the authority of Delaware statutes.
The arbitrator(s) selected must possess a minimum of five years of experience in either franchising or distribution law. They also have the authority to enforce specific performance of the agreement. If Crave and the franchisee cannot agree on an arbitrator, the selection method will follow the procedures outlined in the Delaware statutes.
The arbitration proceedings will adhere to the commercial arbitration rules established by the American Arbitration Association, unless those rules conflict with the specific arbitration provisions or Delaware statutes. The arbitrator's decision is considered final and binding for all involved parties. This arbitration clause remains in effect even after the termination or non-renewal of the franchise agreement. The arbitrator's award can be enforced in any court with the appropriate jurisdiction.
During any arbitration, both Crave and the franchisee are required to continue fulfilling their obligations under the franchise agreement.