Does a demand for arbitration against Crepe De Licious postpone the effectiveness of a termination of the Franchise Agreement?

According to the 2025 Crepe De Licious Franchise Disclosure Document, initiating a demand for arbitration will not delay or cancel a termination of the Franchise Agreement. This means that even if a franchisee requests arbitration to dispute a termination, the termination takes effect regardless.

This clause ensures that Crepe De Licious can proceed with a termination without being held back by ongoing arbitration. However, the arbitration process will still proceed to resolve the dispute, but it will not prevent the termination from taking effect.

For a prospective Crepe De Licious franchisee, this implies that if the franchisor decides to terminate the agreement, the franchisee must cease operations even while pursuing arbitration. This could create financial and operational challenges for the franchisee, as they would be without the franchise's income while incurring legal expenses for the arbitration. It is important to understand the grounds for termination outlined in the Franchise Agreement and to assess the potential risks associated with this clause.