What claims are excluded from the mediation and arbitration requirements for Crepe De Licious?

According to the 2025 Crepe De Licious Franchise Disclosure Document, there are specific claims that Crepe De Licious is not required to mediate or arbitrate. These exceptions involve allegations by Crepe De Licious that a franchisee has violated or threatens to violate the company's federally protected intellectual property rights in its Marks, System, trade secrets, or confidential information. Additionally, claims pertaining to or arising out of any warranty issued and any of the restrictive covenants contained in the Franchise Agreement are also excluded from mandatory mediation or arbitration.

For a prospective Crepe De Licious franchisee, this means that while most disputes would first be subject to mediation, Crepe De Licious reserves the right to immediately pursue legal action in certain critical areas. These areas primarily concern the protection of Crepe De Licious's brand and proprietary information, as well as adherence to warranty terms and restrictive covenants. This approach is not uncommon in franchising, as franchisors typically prioritize swift action against infringements of their intellectual property and breaches of contract.

This clause highlights the importance of understanding and complying with the terms of the franchise agreement, particularly those related to intellectual property, warranties, and restrictive covenants. Failure to do so could result in Crepe De Licious bypassing mediation and directly pursuing legal remedies, which could be more costly and time-consuming for the franchisee. Prospective franchisees should carefully review these sections of the agreement and seek legal counsel to fully understand their obligations and potential liabilities.