factual

For Crepe De Licious franchises in Minnesota, is the obligation in the Franchise Agreement relating to arbitration affected by the deletion of provisions that require waiving rights to procedures, forums, or remedies?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

Any provision in the Franchise Agreement which would require you to waive your rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any agreement relating

  • to Franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Franchise Agreement relating to arbitration.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, for franchises offered and sold in Minnesota, the deletion of provisions requiring a waiver of rights to procedures, forums, or remedies does not affect the obligation in the Franchise Agreement relating to arbitration.

This means that while certain provisions in the standard Franchise Agreement that might compel a franchisee to waive their legal rights are removed to comply with Minnesota law, the requirement to resolve disputes through arbitration remains in effect. Arbitration is a method of alternative dispute resolution where a neutral third party hears both sides of a dispute and renders a decision, which can be binding.

For a prospective Crepe De Licious franchisee in Minnesota, this implies that if a dispute arises with the franchisor, they will likely need to resolve it through arbitration rather than through the court system. While Minnesota law protects a franchisee's rights to certain procedures, forums, and remedies, this protection does not extend to nullifying the arbitration clause in the franchise agreement. Franchisees should understand the implications of arbitration, including its potential costs and limitations on appealing decisions, before signing the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.