If mediation has not resolved a matter successfully with Crave Cookies, what is the next step?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
If either party chooses to file a legal proceeding, as provided below, the mediator will be disqualified as a witness, consultant, expert, or counsel for either party for the matter in dispute and any related matters.
If Franchisee and Crave Cookies Franchising agree not to participate in mediation, then the matter may proceed to a legal suit as provided below.
- (iii) Legal Proceeding.
If the mediation has not resolved the matter successfully, or mediation is waived, either Franchisee or Crave Cookies Franchising may institute a legal suit, action, or proceeding, exclusively in the city and state of Crave Cookies Franchising's then-current headquarters, against the other party to enforce this Agreement or obtain any other remedy regarding any breach of this Agreement.
The prevailing party in the suit, action, or proceeding is entitled to receive, and the non-prevailing party shall pay, in addition to all other remedies to which the prevailing party may be entitled, the costs and expenses incurred by the prevailing party in conducting the suit, action, or proceeding, including attorneys' fees and expenses and court costs, even if not recoverable by law, including, but not limited to, all fees, taxes, costs, and expenses incident to appellate and post-judgment proceedings.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if mediation does not resolve a dispute, either the franchisee or Crave Cookies Franchising may initiate a legal suit, action, or proceeding. This legal action must be pursued exclusively in the city and state where Crave Cookies Franchising's headquarters is located at that time. Alternatively, if both parties agree to waive mediation, they can proceed directly to a legal suit.
The FDD specifies that the prevailing party in any such legal action is entitled to receive payment for costs and expenses incurred, including attorney's fees and court costs, from the non-prevailing party. This includes costs associated with appellate and post-judgment proceedings, regardless of whether they are typically recoverable by law.
This clause has significant implications for prospective Crave Cookies franchisees. It means that franchisees may be required to litigate disputes in the city and state of Crave Cookies' headquarters, potentially incurring significant travel and legal expenses. Furthermore, while the prevailing party can recover legal costs, franchisees should be aware of the risk of incurring substantial expenses if they do not prevail in a legal dispute with Crave Cookies.