Does Crave Cookies enter into arbitration proceedings with franchisees to resolve disagreements?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Due to periodic disagreements with franchisees, the Company enters into arbitration proceedings to resolve the various matters. As of December 31, 2024, the Company was in arbitration with a franchisee. While the Company believes it will receive a favorable outcome, the potential outcome has not been evaluated and is not reflected on these financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Yes, according to Crave Cookies' 2025 Franchise Disclosure Document, the company does enter into arbitration proceedings with franchisees to resolve disagreements. As of December 31, 2024, Crave Cookies was in arbitration with one of its franchisees.
While Crave Cookies believes it will receive a favorable outcome from the arbitration, the potential outcome has not yet been evaluated and is not reflected in the financial statements. This indicates that disagreements can arise between Crave Cookies and its franchisees, necessitating a formal resolution process.
For a prospective franchisee, this highlights the importance of understanding the terms and conditions outlined in the franchise agreement regarding dispute resolution. It also suggests the need to conduct thorough due diligence, including speaking with current and former franchisees, to assess the nature and frequency of potential disagreements with Crave Cookies.