factual

Does Crave Cookies limit litigation brought for breach of the franchise agreement?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (10) Limiting litigation brought for breach of the agreement in any manner whatsoever.

  • 3. Effective Date. This Rider is effective as of the Effective Date.

Agreed to by:

CRAVE COOKIES FRANCHISING, LLC Crave Cookies FDD 2025 State Addenda to Agreements

MARYLAND RIDER TO FRANCHISE AGREEMENT AND MULTI-UNIT DEVELOPMENT AGREEMENT


  1. This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises. The franchise fee for your first unit is counted in the "Estimated Initial Investment – Franchise Agreement" table. Your initial franchise fees are reduced to $26,000 for the second and each additional franchise. You will pay all franchise fees upon signing the MUDA.

Invalid Statements in the State of Washington. If the Franchisor omitted material information or made certain representations, promises, guarantees or warranties outside of the FDD, it may give rise to a claim under chapter 19.100 RCW. Further, franchisees cannot waive any such claims pursuant to RCW 19.100.220. As such, we believe that it may not be in "good faith" in accordance with RCW 19.100.180(1) to include provisions that may be prohibited under Washington law. As such, the following statements do not apply to Washington Franchisees:

  • (1) Section 5.4(c) of the Franchise Agreement:
    • "Franchisee acknowledges that Crave Cookies Franchising accepts no responsibility for the performance of the business."
  • (2) Section 6.1(iii) of the Franchise Agreement:
    • "... Crave Cookies has no liability to Franchisee with respect to the location of the Business."
  • (3) Article 19 of the Franchise Agreement does not apply in the State of Washington.

In any litigation or mediation involving a franchise purchased in Washington, the litigation or mediation 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. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.

The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."

3. Effective Date. This Rider is effective as of the Effective Date.

CRAVE COOKIES FRANCHISING, LLC

Source: Item 23 — RECEIPTS (FDD pages 47–194)

What This Means (2025 FDD)

According to the 2025 Crave Cookies FDD, whether or not the franchise agreement limits litigation depends on the state where the franchise is purchased.

For example, the Maryland Rider to Franchise Agreement and Multi-Unit Development Agreement states that the franchise agreement cannot include terms that limit litigation brought for breach of the agreement in any manner whatsoever.

In Washington, the FDD states that in any litigation or mediation involving a franchise purchased in Washington, the litigation or mediation 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. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

For franchisees in Minnesota, the Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.