What happens if there is a protest of arbitrability in a Crepe De Licious arbitration?

According to the 2025 Crepe De Licious Franchise Disclosure Document, if a party protests the arbitrability of a dispute, the arbitration will not proceed until the arbitrator or an appropriate court resolves the protest. This means that before the actual arbitration process can begin, the arbitrator or a court must first determine whether the dispute is even subject to arbitration based on the franchise agreement.

For a prospective Crepe De Licious franchisee, this clause provides a safeguard. It ensures that they cannot be forced into arbitration for matters that fall outside the scope of the arbitration agreement. It also allows either party to challenge whether a particular dispute is properly subject to arbitration, which can save time and resources if the challenge is successful.

However, this process can also add time and complexity to dispute resolution. If a protest is raised, the parties must wait for a decision on arbitrability, potentially involving court intervention, before the arbitration itself can commence. This could delay the resolution of the underlying dispute and increase legal costs. Franchisees should be aware of this potential step in the arbitration process and factor it into their expectations for dispute resolution with Crepe De Licious.