Does the dispute resolution process in the Crave Cookies franchise agreement apply to disputes arising from agreements other than the franchise agreement itself?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Cookies Franchising and Franchisee agrees that it is important to resolve any disputes amicably, quickly, inexpensively, and professionally so that Crave Cookies Franchising and Franchisee can return to business as soon as possible. Crave Cookies Franchising and Franchisee have agreed that the provisions of this Article 17 support these mutual objectives and, therefore, agree to the following.
- (a) Dispute Resolution. Crave Cookies Franchising and Franchisee agree that any dispute, controversy, issue, claim, or action whatsoever ("Dispute") between Crave Cookies Franchising, or its affiliates, shareholders, members, managers, officers, directors, agents, employees, and attorneys arising out of or relating to this Agreement, or any other agreem
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the dispute resolution process applies not only to the franchise agreement but also to other agreements between the franchisee and Crave Cookies. Specifically, any dispute arising out of or relating to the franchise agreement or any other agreement between the franchisee and Crave Cookies will be subject to the dispute resolution process outlined in Article 17 of the franchise agreement. This ensures that disagreements are addressed through a structured process, starting with a face-to-face meeting and potentially moving to mediation.
This provision is significant for prospective Crave Cookies franchisees because it consolidates dispute resolution for various potential issues under a single framework. It streamlines the process for resolving conflicts, as all disputes, whether stemming from the franchise agreement or other agreements, will follow the same steps. This can save time and resources by avoiding multiple dispute resolution procedures. The FDD specifies that the dispute resolution process involves an initial face-to-face meeting at Crave Cookies' headquarters, followed by possible non-binding mediation. Legal proceedings can only be initiated if mediation is unsuccessful or waived.
However, there are exceptions to the mediation requirement. Crave Cookies is not obligated to mediate disputes related to the validity of trademarks or other intellectual property, rights to obtain prejudgment remedies, or disputes solely for royalty or marketing fund contribution fees owed under the agreement. These exceptions allow Crave Cookies to pursue legal action more swiftly in cases where intellectual property rights or payment obligations are at stake. Additionally, any legal action related to the franchise agreement must be initiated within two years of discovering the conduct or event that forms the basis of the action, although this time limit does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the Marks.
Furthermore, the Guaranty signed by the guarantor incorporates the dispute resolution process outlined in Article 17 of the Franchise Agreement. This means that any disputes arising under the Guaranty will also be subject to the same resolution process, ensuring consistency in how conflicts are addressed across different contractual relationships within the Crave Cookies franchise system. Franchisees should be aware of these provisions and understand the implications for resolving potential disputes with Crave Cookies.