Does the Crave Cookies franchise agreement require mediation before litigation for disputes, and are there any exceptions?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| t. Integration/merger clause | FA: § 18.3 MUDA: § 7 | Only the terms of the agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement (or MUDA) may not be enforceable. However, no claim made in any franchise agreement (or MUDA) is intended to disclaim the express representations made in this Disclosure Document. |
|---|---|---|
| u. Dispute resolution by litigation or mediation | FA: § 17.1 MUDA: § 7 | Except for certain claims, for disputes there must be a face-to-face meeting, mediation and litigation (subject to applicable state law). |
| v. Choice of forum | FA: §§ 17.1; 17.5 MUDA: § 7 | Litigation will take place where our headquarters are located (currently, Holladay, Utah) (subject to applicable state law). Any legal proceedings will take place in the District Court of the United States, in the district where our headquarters is then located, or if this court lacks jurisdiction, the state courts of the state and county where our headquarters is then located (subject to applicable state law). |
| w. Choice of law | FA: § 18.8 MUDA: § 7 | Utah (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 34–38)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the franchise agreement outlines a dispute resolution process that includes a face-to-face meeting, mediation, and litigation. This process is subject to applicable state law. This means that, except for certain claims, a Crave Cookies franchisee is generally required to attempt to resolve disputes through a face-to-face meeting and mediation before resorting to litigation.
The FDD does not specify what constitutes "certain claims" that would be exempt from the face-to-face meeting and mediation requirements. It is important for a prospective franchisee to understand what types of claims Crave Cookies considers exempt, as this could impact their ability to resolve disputes efficiently and cost-effectively.
The Crave Cookies franchise agreement also specifies that any litigation will take place where Crave Cookies's headquarters are located, which is currently in Holladay, Utah. Legal proceedings will occur in the District Court of the United States in the district where their headquarters is located, or if this court lacks jurisdiction, the state courts of the state and county where their headquarters is located, subject to applicable state law. Furthermore, the franchise agreement is governed by Utah law, also subject to applicable state law.