What dispute resolution procedures are required for disputes involving Crave Cookies, before litigation?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| t. Integration/merger clause | FA: § 18.3 MUDA: § 7 | Only the terms of the agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement (or MUDA) may not be enforceable. However, no claim made in any franchise agreement (or MUDA) is intended to disclaim the express representations made in this Disclosure Document. |
|---|---|---|
| u. Dispute resolution by litigation or mediation | FA: § 17.1 MUDA: § 7 | Except for certain claims, for disputes there must be a face-to-face meeting, mediation and litigation (subject to applicable state law). |
| v. Choice of forum | FA: §§ 17.1; 17.5 MUDA: § 7 | Litigation will take place where our headquarters are located (currently, Holladay, Utah) (subject to applicable state law). Any legal proceedings will take place in the District Court of the United States, in the district where our headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where our headquarters is then located (subject to applicable state law). |
| w. Choice of law | FA: § 18.8 MUDA: § 7 | Utah (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 34–38)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Item 17 outlines the dispute resolution procedures. Before resorting to litigation, Crave Cookies requires that disputes (except for certain claims) undergo a process that includes a face-to-face meeting and mediation. This requirement is subject to applicable state law, meaning that the specific procedures and their enforceability can vary depending on the franchisee's location.
This multi-step approach to dispute resolution—requiring a face-to-face meeting and mediation before litigation—is a fairly common practice in franchising. It aims to resolve conflicts amicably and efficiently, potentially saving both parties time and money compared to immediately pursuing legal action. The face-to-face meeting allows for direct communication and clarification of issues, while mediation involves a neutral third party who helps facilitate a mutually agreeable resolution.
However, the FDD also indicates that these dispute resolution steps are 'subject to applicable state law.' This means that state laws may dictate specific mediation procedures, or even render mandatory mediation unenforceable. A prospective Crave Cookies franchisee should consult with a legal professional to understand the specific dispute resolution laws in their state and how they might affect their franchise agreement with Crave Cookies. Understanding these state-specific nuances is crucial for protecting their interests and ensuring compliance with all legal requirements.
Furthermore, the FDD specifies that litigation will take place where Crave Cookies's headquarters are located, which is currently in Holladay, Utah. Any legal proceedings will occur in the District Court of the United States in the district where their headquarters is located, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is located, subject to applicable state law. The choice of law is Utah, also subject to applicable state law.