Where will arbitration proceedings be held for Crepe De Licious disputes, unless otherwise agreed?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
18.02 Binding Arbitration. Without limiting our rights and remedies under Section 16, the parties hereto acknowledge and agree that any dispute or controversy arising out of or relating to this Agreement not settled by informal negotiations will, at the request of either party, be settled by final and binding arbitration conducted in the State of Delaware (or the state in which we then have our thencurrent principal place of business) by the ADR in accordance with the then-current National Arbitration Rules of the ADR and otherwise as set forth below on an individual basis (not a class action):
- (a) Notice of Arbitration.
Either party may initiate the arbitration proceeding by making a written demand to the other party, and both parties will then be obligated to engage in arbitration.
The demand for arbitration must be served on the other party within the period provided by the applicable statute of limitations, and must contain a statement setting forth the nature of the dispute, the amount involved, if any, and the remedies sought.
A demand for arbitration will not operate to stay, postpone or rescind the effectiveness of any termination of this Agreement.
Arbitration will not proceed until any protest of arbitrability is resolved by the arbitrator or by an appropriate court, if necessary.
- (b) Selection of Arbitrator.
Arbitration will be conducted before a single arbitrator who is familiar with legal disputes of the type at issue and who has at least 10 years' experience as a lawyer or in the franchise business.
The parties will mutually agree on the selection of the arbitrator; however, if the parties have not agreed on the selection of an arbitrator within 30 days after the arbitration demand, either party may request the ADR or successor organization, to appoint a qualified arbitrator.
- (c) Preliminary Conference.
Within 10 days after appointment of the arbitrator, the parties will meet with the arbitrator, in person or by telephone, for a preliminary conference.
At the preliminary conference, the parties will establish the extent of and schedule for discovery, including the production of relevant documents, identification of witnesses, depositions, and the stipulation of uncontested facts.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, any dispute or controversy arising from the Franchise Agreement that is not settled through informal negotiations will be settled by final and binding arbitration. Unless otherwise agreed upon, the arbitration will take place in the State of Delaware or the state in which Crepe De Licious has its principal place of business at the time of the dispute. The arbitration will be conducted by the ADR (presumably, the American Arbitration Association) in accordance with its then-current National Arbitration Rules.
This means that as a Crepe De Licious franchisee, you may be required to travel to Delaware (or the location of the principal business) to participate in arbitration proceedings if a dispute arises with the franchisor. This could involve significant travel expenses and legal fees. The arbitration will be handled by a single arbitrator with at least 10 years of experience as a lawyer or in the franchise business, and the parties will attempt to agree on the selection of the arbitrator. If they cannot agree within 30 days, the ADR or a successor organization will appoint a qualified arbitrator.
Before arbitration begins, there will be a preliminary conference to establish the scope and schedule for discovery, including document production, witness identification, and depositions. It is important to note that arbitration will be conducted on an individual basis and not as a class action.
While Crepe De Licious mandates arbitration, both parties retain the right to seek temporary restraining orders or preliminary injunctive relief from a court of competent jurisdiction, provided that the dispute is simultaneously submitted for arbitration on the merits. Franchisees should be aware of these conditions and consider the potential costs and logistical challenges associated with arbitration when evaluating the franchise opportunity.