Who conducts the non-binding mediation for Crepe De Licious disputes?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
DISPUTE RESOLUTION**
- Governing 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, the American Arbitration Association conducts the non-binding mediation for disputes between the parties. The mediation follows the association's then-current rules for commercial disputes. Unless otherwise agreed in writing, the mediation proceedings occur within a five-mile radius of Crepe De Licious's principal place of business at the time.
This mediation step is required before either party can initiate arbitration or court action, with exceptions for seeking injunctive relief against threatened conduct that could cause loss or damages. The mediation must conclude within 45 days of the Area Developer receiving notice specifying the designated mediator, although this period can be extended by written agreement between the parties.
All aspects of the mediation process are confidential and inadmissible in other proceedings. Both Crepe De Licious and the Area Developer bear their own costs of mediation and split the costs of the mediator or mediation service equally. This structured mediation process aims to resolve disputes efficiently and confidentially before escalating to more formal and costly legal proceedings.