As of December 31, 2024, was Crave Cookies in arbitration with any franchisees?

According to Crave Cookies' 2025 Franchise Disclosure Document, as of December 31, 2024, Crave Cookies was in arbitration with one of its franchisees. The FDD notes that these arbitrations arise from periodic disagreements. While Crave Cookies believes it will receive a favorable outcome from the arbitration, the potential outcome has not been evaluated and is not reflected in the financial statements.

This information is relevant for prospective franchisees as it indicates the possibility of disputes arising between Crave Cookies and its franchisees that may require resolution through arbitration. Arbitration can be a costly and time-consuming process, even if Crave Cookies anticipates a favorable outcome. The fact that the potential outcome is not reflected in the financial statements suggests uncertainty regarding the financial impact of the arbitration.

It is important for potential franchisees to understand the nature of these disagreements and the potential costs and risks associated with arbitration. Prospective franchisees should consider discussing with Crave Cookies the types of disagreements that have led to arbitration in the past and the typical costs associated with such proceedings. Understanding the franchisor-franchisee relationship and potential dispute resolution processes is a crucial part of due diligence before investing in a franchise.