If negotiation and arbitration fail to resolve a dispute with Crave, to which courts does the franchisee irrevocably submit jurisdiction?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 With respect to any claims, controversies or disputes which are not finally resolved through negotiation or arbitration, or as otherwise provided above, you hereby irrevocably submit yourself to the jurisdiction of the state courts and the Federal District Court nearest to Wilmington, Delaware. You hereby waive all questions of personal jurisdiction for the purpose of carrying out this provision. You hereby agree that service of process may be made upon any of you in any proceeding relating to or arising out of this Agreement or the relationship created by this Agreement by any means allowed by Delaware or federal law. You further agree that venue for any proceeding relating to or arising out of this Agreement shall be
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if disputes are not resolved through negotiation or arbitration, the franchisee irrevocably submits to the jurisdiction of the state courts and the Federal District Court nearest to Wilmington, Delaware. The franchisee also waives all questions of personal jurisdiction to carry out this provision.
This means that any legal proceedings against Crave, if not settled through negotiation or arbitration, must be pursued in the specified Delaware courts. This clause dictates the location where a franchisee can sue Crave, which may be inconvenient and costly for franchisees located far from Delaware.
It is important for prospective franchisees to understand this clause, as it limits their options for legal recourse and may increase the expenses associated with resolving disputes. Franchisees should consider the potential costs and logistical challenges of litigating in Delaware before investing in a Crave franchise.