In the Cream franchise agreement, what is the geographic limit for the arbitrator's choice of location for arbitration proceedings?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, any arbitration proceedings with Cream will take place at a location chosen by the arbitrator. The arbitrator must select a location within 50 miles of Cream's principal place of business. Currently, Cream's principal place of business is in Columbus, Ohio.
This means a franchisee may be required to travel to Columbus, Ohio, or a location within 50 miles of Columbus, Ohio, for arbitration, regardless of where the franchise is located. This could create additional expenses for travel and lodging.
It is fairly common in franchising for the arbitration location to be near the franchisor's headquarters. This clause helps Cream manage legal costs and ensures consistency in arbitration proceedings. However, franchisees should consider the potential travel expenses and inconvenience when evaluating this franchise opportunity.