Is Crave Cookies Franchising required to mediate disputes solely for royalty fees owed?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that nothing in this Agreement requires Crave Cookies Franchising to mediate disputes related to any of the following: (1) the validity of Marks, trademarks, service marks, or other Intellectual Property; (2) rights to obtain a writ of attachment or other prejudgment remedies; or (3) Disputes solely for royalty fees or marketing fund contribution fees owed by one party to the other under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising is not required to mediate disputes regarding royalty fees. The FDD outlines specific exceptions to mediation, and disputes solely for royalty fees or marketing fund contribution fees owed by one party to the other are among them. This means that if a dispute arises strictly over unpaid royalties or marketing fund contributions, Crave Cookies Franchising can bypass mediation and proceed directly to a legal suit.
This policy has important implications for a prospective Crave Cookies franchisee. If a franchisee falls behind on royalty payments or marketing fund contributions, Crave Cookies Franchising can immediately pursue legal action without first attempting to resolve the issue through mediation. This could potentially lead to quicker and more aggressive legal proceedings against a franchisee in such situations.
Franchisees should be aware of this exception and ensure they understand their obligations regarding royalty and marketing fund payments. Maintaining open communication with Crave Cookies Franchising and addressing any payment issues promptly could help avoid escalation to legal action. This is a deviation from standard business practices where mediation is often attempted before legal proceedings.