Under what circumstances related to dispute resolution does Crave reserve the right to use judicial process and injunctions?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1 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").
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains the right to enforce the provisions of the Franchise Agreement through judicial process and injunctions at its sole discretion. This means that while Crave typically prefers to resolve disputes through negotiation and binding arbitration, it can choose to pursue legal action in court under certain circumstances.
Specifically, Crave can elect to bypass negotiation and arbitration in favor of judicial proceedings and seek injunctive relief. Injunctive relief is a court order that requires a party to do or cease doing a specific action. This could be used, for example, to prevent a franchisee from violating the terms of the franchise agreement, such as operating a competing business or misusing Crave's trademarks.
This clause gives Crave significant power in dispute resolution, as it can choose the forum and legal remedies it deems most appropriate. While arbitration is often seen as a more cost-effective and efficient means of resolving disputes, Crave's ability to pursue judicial remedies provides it with additional leverage. Prospective franchisees should carefully consider this provision and understand the potential implications of Crave's right to seek injunctions and other judicial relief.