Does the dispute resolution process outlined in the Crave Cookies franchise agreement apply to disputes with affiliates of Crave Cookies Franchising?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 agreement
between Franchisee and Crave Cookies Franchising, the Business, except those outlined under paragraph (b) below, will be exclusively processed in the following manner:
- (i) Face-to-Face Meeting.
The Dispute shall first be discussed in a face-to-face meeting between Franchisee and Crave Cookies Franchising at Crave Cookies Franchising's then-current headquarters.
This face-to-face meeting will be held within thirty (30) days of Franchisee or Crave Cookies Franchising providing written notice to the other requesting such meeting.
Crave Cookies Franchising has the right, in its sole discretion, to waive this requirement.
- (ii) Mediation.
If the face-to-face meeting has not resolved the matter successfully, either Franchisee or Crave Cookies Franchising may submit the matter to non-binding mediation using Utah ADR Services or as otherwise mutually agreed.
Franchisee and Crave Cookies Franchising will split the costs, and each will bear their own expenses of any mediation.
The mediation will be conducted exclusively in the city and state of Crave Cookies Franchising's then-current headquarters.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the dispute resolution process applies to disputes with Crave Cookies Franchising's affiliates. The franchise agreement states that any dispute between the franchisee and Crave Cookies Franchising, or its affiliates, will be processed according to the outlined procedures. This includes disputes arising out of the agreement itself or any other agreement between the franchisee and Crave Cookies Franchising.
This means that if a franchisee has a disagreement with an affiliate of Crave Cookies Franchising related to the franchise agreement or any other agreement, they must first attempt to resolve it through a face-to-face meeting with Crave Cookies Franchising. If that meeting is unsuccessful, either party may submit the matter to non-binding mediation. Only if mediation fails or is waived can a legal suit be initiated.
This requirement to go through face-to-face meetings and mediation before litigation can save both Crave Cookies and its franchisees time and money. It also fosters a collaborative approach to problem-solving. However, franchisees should be aware that they are obligated to follow this process for disputes with Crave Cookies Franchising's affiliates, potentially delaying their access to the courts. The legal proceedings must occur in the city and state of Crave Cookies Franchising's headquarters.