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

According to the 2025 Crepe De Licious Franchise Disclosure Document, a demand for arbitration does not automatically prevent the termination of the franchise agreement. The FDD specifies that even if a franchisee initiates arbitration, Crepe De Licious can still proceed with the termination process.

This means that Crepe De Licious is not obligated to postpone or halt the termination of the agreement simply because the franchisee has requested arbitration. The termination can proceed regardless of the pending arbitration. This clause protects Crepe De Licious's ability to end the franchise relationship if they believe there are grounds for termination, even while a dispute resolution process is underway.

For a prospective Crepe De Licious franchisee, this is a critical point to understand. If a dispute arises that leads to a termination notice, initiating arbitration will not guarantee that the franchise can continue operating during the arbitration period. Franchisees need to be aware that termination can still occur, potentially leading to a loss of business and revenue, even if they are actively pursuing arbitration.