Does the Crepe De Licious franchise agreement include a waiver of jury trial?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.6 WAIVER OF JURY TRIAL.
FRANCHISOR AND AREA DEVELOPER IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER.
- 16.7 Limitation.
Any and all claims and actions arising out of or relating to this Agreement and/or the relationship of Area Developer and Franchisor, brought by either party hereto against the other, whether in mediation, in arbitration or in court, shall be commenced within one (1) year from the occurrence of the facts giving rise to such claim or action, or such claim or action shall be forever barred.
- 16.8 WAIVER OF RICO.
THE PARTIES HERETO AGREE TO WAIVE, NOW AND FOREVER, ANY AND ALL RIGHTS EITHER MAY HAVE UNDER THE FEDERAL STATUTE KNOWN AS RICO.
- 16.9 WAIVER OF PUNITIVE DAMAGES.
FRANCHISOR AND AREA DEVELOPER HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the franchise agreement includes a waiver of jury trial. Specifically, the document states that the franchisor and area developer irrevocably waive trial by jury in any action, proceeding, or counterclaim brought by either party against the other, whether at law or in equity. This means that franchisees are giving up their right to have a jury decide any legal disputes they may have with Crepe De Licious.
This waiver is a significant legal provision. Jury trials can be more expensive and time-consuming than other forms of dispute resolution, such as arbitration or bench trials (where a judge decides the case). By agreeing to a jury trial waiver, franchisees may be streamlining the dispute resolution process, but they are also relinquishing a constitutional right.
Additionally, the Crepe De Licious franchise agreement also includes a clause that any claims or actions arising out of or relating to the agreement must be commenced within one year from the occurrence of the facts giving rise to such claim, or the claim will be barred. The agreement also includes a waiver of rights under the federal RICO statute and a waiver of punitive damages. These clauses collectively limit the legal avenues and potential remedies available to franchisees in case of disputes with Crepe De Licious.
Prospective franchisees should carefully consider the implications of these waivers, especially the jury trial waiver, with their legal counsel. It is a common practice in franchising for agreements to include clauses that streamline dispute resolution, but franchisees should understand the rights they are giving up and the potential impact on their ability to seek redress in case of a disagreement with Crepe De Licious.