What is the current principal place of business that determines the arbitration location for Cream?
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, any disputes requiring arbitration will occur within 50 miles of Cream's principal place of business. Currently, Cream's principal place of business is Columbus, Ohio. This means that if a franchisee has a dispute with Cream that goes to arbitration, the proceedings will take place in a location chosen by the arbitrator within that 50-mile radius of Columbus.
This requirement could create additional expenses for franchisees who do not live near Columbus, Ohio, as they would need to travel for any arbitration hearings. These costs could include transportation, accommodation, and potentially legal representation in the Columbus area. Franchisees should consider these potential costs when evaluating the Cream franchise opportunity.
It is important to note that the arbitrator will select a suitable location within that radius, but the franchisee may still incur travel expenses depending on the exact location chosen. Furthermore, if Cream moves its principal place of business, the arbitration location would also change, potentially impacting existing franchisees.