Where will the arbitration proceedings for Cream be conducted?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you agree that all controversies, disputes, or claims between us or any of our affiliates, and our and their respective owners, officers, directors, agents, and employees, on the one hand, and you and your owners, guarantors, affiliates, and employees, on the other hand, arising out of or related to: (1) this Agreement or any other agreement between you (or any of your owners) and us (or any of our affiliates); (2) our relationship with you; (3) the scope or validity of this Agreement or any other agreement between you (or any of your owners) and us (or any of our affiliates) or any provision of any of such agreements (including the validity and scope of this arbitration provision, which is to be determined by an arbitrator, not a court); or (4) any System Standard, must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association (the "AAA"). The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the AAA's then-current Commercial Arbitration Rules. All proceedings will be conducted at a suitable location chosen by the arbitrator that is within 50 miles of our or, as applicable, our successor's or assign's then-current principal place of business (currently, Columbus, Ohio). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). The interim and final awards of the arbitrator shall be final and binding upon each party, and judgment upon the arbitrator's awards may be entered in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, arbitration proceedings will occur at a location chosen by the arbitrator. This location must be within 50 miles of Cream's principal place of business. Currently, Cream's principal place of business is in Columbus, Ohio.
This means that any arbitration between a Cream franchisee and the company will take place in or around Columbus, Ohio. This could involve travel and associated expenses for a franchisee who lives outside of that area. Franchisees should factor in these potential costs when evaluating the franchise opportunity.
It is fairly common in franchising for the arbitration location to be near the franchisor's headquarters. This arrangement tends to favor the franchisor, as their personnel are local and do not incur travel costs. A prospective Cream franchisee should consider this factor, especially if they anticipate potential disputes with the franchisor during the franchise term.