factual

Under what circumstances can a legal suit be initiated against Crave Cookies without mediation?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

If Franchisee and Crave Cookies Franchising agree not to participate in mediation, then the matter may proceed to a legal suit as provided below.

  • (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 circumstances where a franchisee or Crave Cookies Franchising can initiate a legal suit without first going through mediation. Generally, Crave Cookies and its franchisees agree to resolve disputes through a face-to-face meeting and then mediation before pursuing legal action. However, mediation can be waived if both parties agree not to participate.

Crave Cookies is not required to mediate disputes relating to the validity of their trademarks, service marks, or other intellectual property. Additionally, disputes regarding rights to obtain a writ of attachment or other prejudgment remedies, and disputes solely for royalty fees or marketing fund contribution fees owed under the Franchise Agreement, are also exceptions to the mediation requirement.

If mediation is unsuccessful or waived, either the franchisee or Crave Cookies can start a legal suit to enforce the agreement or address any breaches. It is important to note that any legal proceeding must be instituted within two years from the date the conduct or event forming the basis of the legal action is discovered. However, this time limit does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the Crave Cookies' marks.

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.