Does the restriction on requiring referral of controversies apply to mediation before an independent mediator for Crave Cookies in Indiana?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Requiring the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel which purports to relieve any person from liability to be imposed by the Indiana Deceptive Franchise Practices Act or requiring any controversy between the franchisee and the franchisor to be referred to any person, if referral would be binding on the franchisee.
This subsection (5) does not apply to mediation before an independent mediator.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the restriction on requiring a franchisee to refer controversies does not apply to mediation before an independent mediator in Indiana. Specifically, the FDD addresses the Indiana Deceptive Franchise Practices Act and its implications for the franchise agreement.
This means that Crave Cookies franchisees in Indiana are not obligated to agree to binding referrals of disputes to a third party. However, this exception explicitly allows for mediation before an independent mediator. This provision aims to protect franchisees from potentially unfair or biased dispute resolution processes while still allowing for mediation as a means of resolving conflicts.
For a prospective Crave Cookies franchisee in Indiana, this is a beneficial clause. It ensures that while they can engage in mediation to resolve disputes, they are not forced into binding arbitration or other dispute resolution methods that might be unfavorable. This offers a balanced approach, providing an opportunity for resolution while safeguarding the franchisee's rights under the Indiana Deceptive Franchise Practices Act.