Under what condition can a Crave Cookies dispute proceed directly to a legal suit?
Crave_Cookies Franchise · 2025 FDDAnswer 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, a dispute can proceed directly to a legal suit if both the franchisee and Crave Cookies agree to waive mediation. Typically, franchise agreements require mediation or other forms of alternative dispute resolution before a lawsuit can be filed.
Specifically, if both parties agree not to participate in mediation, either the franchisee or Crave Cookies Franchising can immediately start a legal suit against the other. This provides an exception to the standard dispute resolution process, allowing for quicker resolution through the courts if both parties concur that mediation would be unproductive.
It is important to note that Crave Cookies does not have to mediate disputes related to the validity of trademarks, service marks, or other intellectual property, rights to obtain a writ of attachment or other prejudgment remedies, or disputes solely for royalty fees or marketing fund contribution fees owed. This means that Crave Cookies can immediately pursue legal action in these specific cases without first attempting mediation.