What is the current principal place of business used to determine 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, the current principal place of business used to determine the arbitration location is Columbus, Ohio. In the event of any disputes or claims requiring arbitration, the proceedings will occur at a location chosen by the arbitrator within 50 miles of Cream's principal business location. This applies to disputes arising from the franchise agreement or the relationship between the franchisee and Cream.
This means that if a Cream franchisee has a dispute with the company that goes to arbitration, the arbitration proceedings will take place in or near Columbus, Ohio, regardless of where the franchise is located. This could create additional travel and logistical expenses for a franchisee who does not live near Columbus.
It is important for prospective franchisees to consider this when evaluating the franchise opportunity, as it could add to the cost and inconvenience of resolving disputes. Franchisees should also be aware that the arbitrator's decision is final and binding.