factual

Are there exceptions to the mediation requirement for Crave Cookies Franchising?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Exceptions to Mediation.

Franchisee agrees that nothing in this Agreement requires Crave Cookies Franchising to mediate disputes related to any of the following: (1) the validity of Marks, trademarks, service marks, or other Intellectual Property; (2) rights to obtain a writ of attachment or other prejudgment remedies; or (3) Disputes solely for royalty fees or marketing fund contribution fees owed by one party to the other under this Agreement.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, there are specific exceptions to the mediation requirement. Crave Cookies is not required to mediate disputes relating to the validity of their Marks, trademarks, service marks, or other intellectual property. Additionally, Crave Cookies does not have to mediate disputes regarding rights to obtain a writ of attachment or other prejudgment remedies. Finally, disputes solely for royalty fees or marketing fund contribution fees owed by one party to the other under the Franchise Agreement are also exceptions to the mediation requirement.

For a prospective franchisee, this means that certain types of disputes will bypass mediation and potentially proceed directly to legal action. Specifically, if Crave Cookies believes a franchisee is infringing on their trademarks or intellectual property, or if they are seeking immediate legal remedies like a writ of attachment, they are not obligated to attempt mediation first. Similarly, if the dispute is only about unpaid royalties or marketing fund contributions, Crave Cookies can pursue legal action without mediating.

It is important for a potential Crave Cookies franchisee to understand these exceptions, as they could lead to quicker and potentially more adversarial legal proceedings in certain situations. While mediation is often seen as a more collaborative and cost-effective way to resolve disputes, these exceptions allow Crave Cookies to pursue legal action directly in specific cases, which could result in higher legal costs and a more formal legal process for the franchisee. Franchisees should be aware of these potential risks and consider them when evaluating the franchise opportunity.

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.