What are prospective Crave Cookies franchisees encouraged to consult regarding the applicability of California and federal laws to venue restrictions?

According to Crave Cookies' 2025 Franchise Disclosure Document, prospective franchisees are encouraged to seek legal counsel to understand how California and federal laws may affect venue restrictions in the franchise agreement. Specifically, this consultation should address the applicability of laws such as California Business and Professions Code Section 20040.5 and Code of Civil Procedure Section 1281. These laws may impact provisions that restrict the venue (location) of legal proceedings to a forum outside of California.

This recommendation is particularly important because the Crave Cookies Franchise Agreement stipulates that any litigation will occur in Holladay, Utah, with costs shared equally between Crave Cookies and the franchisee. However, California law may have specific protections for franchisees that could override this clause, potentially allowing disputes to be resolved within California.

By consulting with a private legal counsel, prospective Crave Cookies franchisees can gain a clear understanding of their rights and obligations under both the franchise agreement and applicable laws. This due diligence can help them make informed decisions about entering into the franchise agreement and prepare for potential legal challenges that may arise during the franchise term.