Where will mediation proceedings be conducted for Crepe De Licious disputes, unless otherwise agreed?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Before any party may bring an action in arbitration or in court against the other, the parties must first meet to mediate the dispute (except as otherwise provided below). Any such mediation shall be non-binding and shall be conducted by the American Arbitration Association in accordance with its then-current rules for mediation of commercial disputes. All mediation proceedings will be conducted at a suitable location chosen by the mediator, which is within a five (5) mile radius of Franchisor's then current principal place of business, unless we agree otherwise in writing. Notwithstanding anything to the contrary, this Section 16.2 shall not bar either party from obtaining injunctive relief against threatened conduct that will cause it loss or damages, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions, without having to engage in mediation. Mediation hereunder shall be concluded within forty five (45) days of Area Developer's receipt of the notice specifying the designated mediator or such longer period as may be agreed upon by the parties in writing. All aspects of the mediation process shall be treated as confidential, shall not be disclosed to others, and shall not be offered or admissible in any other proceeding or legal action
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, mediation proceedings will occur at a location chosen by the mediator within a five-mile radius of Crepe De Licious's principal place of business. However, this is only if the parties do not agree otherwise in writing. The principal place of business for Crepe Delicious Holding USA, Inc. is 147 Citation Drive, Unit 29, Concord, Ontario, Canada L4K 2P8.
This means that a franchisee could be required to travel to the vicinity of Concord, Ontario, Canada, for mediation, which could involve significant travel expenses depending on the franchisee's location. It is important to note that this applies to disputes between the Franchisor and Area Developer, as indicated in the document.
Mediation is non-binding, conducted by the American Arbitration Association, and governed by its rules for commercial disputes. This process is confidential, with both parties bearing their own costs and splitting the mediator's fees. Injunctive relief for threatened losses or damages is an exception, allowing parties to bypass mediation under equity rules. Mediation must conclude within 45 days of notice receipt, unless extended in writing. Franchisees should consider the potential costs and logistical challenges of mediating in the specified location when evaluating the franchise opportunity.