During mediation or litigation, are both Crave Cookies Franchising and the franchisee required to continue performing their obligations under the agreement?

According to Crave Cookies's 2025 Franchise Disclosure Document, unless the Franchise Agreement has been terminated, both Crave Cookies Franchising and the franchisee must continue to comply with the agreement and fulfill their respective obligations during any mediation or litigation process. This requirement ensures that the business relationship continues as normally as possible while the dispute is being resolved.

This clause is significant for prospective franchisees because it means that even if a dispute arises, they must continue to operate their Crave Cookies location according to the franchise agreement. This includes maintaining brand standards, paying royalties, and adhering to operational guidelines. Failure to do so could result in further penalties or even termination of the franchise agreement, regardless of the status of the dispute.

This requirement is fairly standard in franchising, as franchisors want to protect their brand and system standards even during disputes. However, franchisees should carefully consider the potential financial and operational burdens of continuing to perform under the agreement while simultaneously engaging in mediation or litigation. It is advisable to seek legal counsel to fully understand the implications of this clause and to develop a strategy for managing obligations during a dispute.