Where must a legal suit, action, or proceeding be instituted against Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
rters. 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.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, any legal suit, action, or proceeding must be instituted in the city and state of Crave Cookies Franchising's then-current headquarters. This applies if mediation has not resolved the matter successfully or if mediation is waived by both parties.
Furthermore, the FDD specifies that any dispute and legal proceeding will be brought in the United States District Court where Crave Cookies Franchising's headquarters is located. If there is no federal jurisdiction over the dispute, the legal proceeding will occur in the court of record of the state and county where Crave Cookies Franchising's headquarters is located. Each party consents to the jurisdiction of such courts and waives any objection to the venue in these courts.
This clause is significant for prospective franchisees as it dictates where they must travel and engage legal counsel should a dispute arise with Crave Cookies, potentially increasing legal costs depending on the franchisee's location. It is a common practice in franchising for the venue of legal proceedings to be the location of the franchisor's headquarters, giving the franchisor a home-court advantage.