Does the Crave Cookies franchise agreement require franchisees to litigate disputes at a location remote from the franchisee's business?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
The laws of the State of Utah (without giving effect to its principles of conflicts of law) govern all adversarial proceedings between the parties.
The parties agree that any Utah law for the protection of franchisees or business opportunity purchasers will not apply unless its jurisdictional requirements are met independently without reference to this Section 7.
Franchisee shall not Transfer this MUDA without the prior written consent of Crave Cookies Franchising, and any Transfer without Crave Cookies Franchising's prior written consent shall be void.
The provisions of Article 17 (Dispute Resolution) and Article 18 (Miscellaneous) of the Franchise Agreement apply to and are incorporated into this MUDA as if fully set forth herein.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, the standard franchise agreement mandates that the laws of Utah govern adversarial proceedings, potentially requiring franchisees to litigate disputes in Utah, which may be a remote location for franchisees operating outside of Utah. Specifically, Section 7 of Item 23 states that Utah law governs adversarial proceedings between the parties. However, there are exceptions for franchisees in Washington and Rhode Island.
For Washington franchisees, Article 19 of the Franchise Agreement does not apply. In any litigation or mediation involving a franchise purchased in Washington, the site will be either in the state of Washington, or in a place mutually agreed upon at the time of the litigation or mediation, or as determined by the court or mediator at the time of litigation or mediation. This ensures that Washington franchisees are not automatically subjected to a remote litigation venue. Similarly, the Rhode Island Rider to the Franchise Agreement states that any provision of the Agreement restricting jurisdiction or venue to a forum outside the State of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under Rhode Island Franchise Investment Act.
For prospective Crave Cookies franchisees, it's crucial to understand which state's laws and venue provisions will govern dispute resolution. Franchisees operating outside of Utah should be aware of the potential costs and logistical challenges of litigating in Utah. Franchisees in Washington and Rhode Island have specific protections that may allow them to litigate closer to their business locations. It is important to consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific circumstances.