What happens to a Crepe De Licious dispute not settled by informal negotiations?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
18.02 Binding Arbitration. Without limiting our rights and remedies under Section 16, the parties hereto acknowledge and agree that any dispute or controversy arising out of or relating to this Agreement not settled by informal negotiations will, at the request of either party, be settled by final and binding arbitration conducted in the State of Delaware (or the state in which we then have our thencurrent principal place of business) by the ADR in accordance with the then-current National Arbitration Rules of the ADR and otherwise as set forth below on an individual basis (not a class action):
- (a) Notice of Arbitration.
Either party may initiate the arbitration proceeding by making a written demand to the other party, and both parties will then be obligated to engage in arbitration.
The demand for arbitration must be served on the other party within the period provided by the applicable statute of limitations, and must contain a statement setting forth the nature of the dispute, the amount involved, if any, and the remedies sought.
A demand for arbitration will not operate to stay, postpone or rescind the effectiveness of any termination of this Agreement.
Arbitration will not proceed until any protest of arbitrability is resolved by the arbitrator or by an appropriate court, if necessary.
- (b) Selection of Arbitrator.
Arbitration will be conducted before a single arbitrator who is familiar with legal disputes of the type at issue and who has at least 10 years' experience as a lawyer or in the franchise business.
The parties will mutually agree on the selection of the arbitrator; however, if the parties have not agreed on the selection of an arbitrator within 30 days after the arbitration demand, either party may request the ADR or successor organization, to appoint a qualified arbitrator.
- (c) Preliminary Conference.
Within 10 days after appointment of the arbitrator, the parties will meet with the arbitrator, in person or by telephone, for a preliminary conference.
At the preliminary conference, the parties will establish the extent of and schedule for discovery, including the production of relevant documents, identification of witnesses, depositions, and the stipulation of uncontested facts.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, any dispute or controversy arising out of or relating to the Franchise Agreement that is not settled through informal negotiations will be settled by final and binding arbitration if either party requests it. This arbitration will occur in the State of Delaware or the state where Crepe De Licious has its principal place of business at the time. The arbitration will be conducted by the ADR (presumably, an arbitration organization) according to its National Arbitration Rules. The arbitration will be on an individual basis and not as a class action.
To initiate arbitration, a written demand must be served on the other party within the applicable statute of limitations, including the nature of the dispute, the amount involved (if any), and the remedies sought. Initiating arbitration does not delay or cancel any termination of the Franchise Agreement. The arbitration proceeds only after any challenges to arbitrability are resolved by the arbitrator or a court if necessary.
The arbitration will be conducted before a single arbitrator with at least 10 years of experience as a lawyer or in the franchise business, and who is familiar with the legal disputes at issue. Both parties must agree on the arbitrator's selection. If an arbitrator is not selected within 30 days after the arbitration demand, either party may request the ADR or a successor organization to appoint one. Within 10 days after the arbitrator's appointment, the parties will meet with the arbitrator for a preliminary conference to establish the scope and schedule for discovery, including document production, witness identification, depositions, and stipulations of uncontested facts.