Who can demand arbitration in a dispute with Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ent.
E. RIGHTS OF PARTIES ARE CUMULATIVE.
Our and your rights under this Agreement are cumulative, and our or your exercise or enforcement of any right or remedy under this Agreement will not preclude our or your exercise or enforcement of any other right or remedy which we or you are entitled by law to enforce.
F. ARBITRATION.
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.
The arbitrator has the right to award or include in his or her awards any relief which he or she deems proper, including money damages, pre- and post-award interest, interim costs and attorneys'
fees, specific performance, and injunctive relief, provided that the arbitrator may not declare any of the trademarks owned by us or our affiliates generic or otherwise invalid, or award any punitive or exemplary damages against any party to the arbitration proceeding (we and you hereby waiving to the fullest extent permitted by law any such right to or claim for any punitive or exemplary damages against any party to the arbitration proceeding).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream and the franchisee both have the right to demand arbitration to resolve disputes. Specifically, any controversies, disputes, or claims between Cream (including its affiliates, owners, officers, directors, agents, and employees) and the franchisee (including their owners, guarantors, affiliates, and employees) can be submitted for binding arbitration. This arbitration process is initiated at the demand of either party.
The disputes subject to arbitration include those arising out of or related to the franchise agreement, any other agreements between the franchisee and Cream, the relationship between Cream and the franchisee, the scope or validity of any agreements, or any System Standard. The arbitration is conducted through the American Arbitration Association (AAA) following its Commercial Arbitration Rules, using one arbitrator. The location for these proceedings will be within 50 miles of Cream's principal place of business, which is currently in Columbus, Ohio.
This agreement to arbitrate is governed by the Federal Arbitration Act, ensuring that the arbitrator's decisions are final and binding. The arbitrator has broad authority to award relief, including monetary damages, interest, costs, attorneys' fees, specific performance, and injunctive relief. However, the arbitrator cannot invalidate Cream's trademarks or award punitive damages. This arbitration clause ensures that disputes are resolved through a structured, legally recognized process, offering both Cream and the franchisee a formal avenue for conflict resolution while waiving their rights to punitive or exemplary damages.