What is the exception to the rule about requiring referral of controversies for Crave Cookies franchisees in Indiana?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Requiring the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel which purports to relieve any person from liability to be imposed by the Indiana Deceptive Franchise Practices Act or requiring any controversy between the franchisee and the franchisor to be referred to any person, if referral would be binding on the franchisee.
This subsection (5) does not apply to mediation before an independent mediator.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, the Indiana Deceptive Franchise Practices Act generally prohibits requiring a franchisee to prospectively agree to refer controversies to any person if that referral would be binding on the franchisee. However, there is an exception to this rule.
The exception states that mediation before an independent mediator is not subject to this prohibition. This means that Crave Cookies can require franchisees in Indiana to participate in mediation with an independent mediator to resolve disputes.
This exception allows Crave Cookies and its Indiana franchisees to attempt to resolve disputes through mediation, which is often a less costly and time-consuming alternative to litigation. However, it's important to note that this exception only applies to mediation before an independent mediator, ensuring a neutral third party is involved in the process.