According to what rules will mediation be conducted for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
verning Law. This Agreement takes effect upon its acceptance and execution by Franchisor, and shall be interpreted and construed under the laws of the State of Delaware. In the event of any conflict of law, the laws of Delaware shall prevail, without regard to, and without giving effect to, the application of Delaware conflict of law rules. Nothing in this Section 16.1 is intended by the parties to subject this Agreement to any franchise or similar law, rule, or regulation of the State of Delaware or of any other state to which it would not otherwise be subject.
- Mon-Binding Mediation. Before any party may bring an action in arbitration or in court against the other, the parties must first meet to mediate the dispute (except as otherwise provided below). Any such mediation shall be non-binding and shall be conducted by the American Arbitration Association in accordance with its then-current rules for mediation of commercial disputes. All mediation proceedings will be conducted at a suitable location chosen by the mediator, which is within a five (5) mile radius of Franchisor's then current principal place of business, unless we agree otherwise in writing. Notwithstanding anything to the contrary, this Section 16.2 shall not bar either party from obtaining injunctive relief against threatened conduct that will cause it loss or damages, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions, without having to engage in mediation.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, before a party can initiate arbitration or court action, they must first attempt to mediate the dispute, with some exceptions. This mediation is non-binding and will be managed by the American Arbitration Association, following its rules for commercial disputes at that time. Unless otherwise agreed in writing, the mediation will occur within a five-mile radius of Crepe De Licious's main business location, as chosen by the mediator.
This mediation requirement does not prevent either party from seeking immediate injunctive relief to prevent potential losses or damages. The mediation process should conclude within 45 days of the notice specifying the mediator, unless both parties agree to extend this period in writing. All aspects of the mediation are to be kept confidential and cannot be disclosed or used in other proceedings.
Both Crepe De Licious and the franchisee will cover their own mediation costs and split the expenses for the mediator or mediation service equally. This arrangement is fairly standard in franchising, as it encourages both parties to find a mutually agreeable solution before escalating to more costly and time-consuming legal actions. The location of the mediation near Crepe De Licious's principal business location could present a logistical challenge or added expense for franchisees located further away.
Prospective franchisees should consider the implications of these dispute resolution procedures, including the costs and location of mediation, and the types of disputes that might arise. Understanding these processes is crucial for managing potential conflicts and maintaining a positive business relationship with Crepe De Licious.