Does a demand for arbitration postpone the termination of the Crepe De Licious agreement?

According to the 2025 Crepe De Licious Franchise Disclosure Document, a demand for arbitration will not delay or cancel the termination of the Franchise Agreement. The FDD specifies that even if a franchisee initiates arbitration, the termination of the agreement remains effective.

This means that Crepe De Licious can proceed with terminating the franchise agreement regardless of whether the franchisee has requested arbitration. The arbitration process will still occur to resolve the dispute, but it won't prevent the termination from taking effect. This is a significant point for prospective franchisees to understand, as it clarifies that termination can proceed independently of any ongoing arbitration proceedings.

This clause protects Crepe De Licious by ensuring they can terminate agreements without being held up by lengthy arbitration processes. However, franchisees retain the right to pursue arbitration for any disputes, but the outcome of the arbitration will not necessarily reverse the termination if Crepe De Licious has valid grounds for it. Franchisees should seek legal counsel to fully understand their rights and obligations in the event of a dispute and potential termination.