Where must mediation take place for disputes involving a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ts attached to this disclosure document.**
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the Franchise | Section 5.21 | Neither you, your principal owners, nor any immediate family members of you or your principal owners may participate in a diverting business, have no owning interest in, loan money to, or perform services for a competitive business anywhere; you may not interfere with our or our other franchisees’ Crepe de licious Franchise(s). |
| r. Non-competition covenants after the Franchise is terminated or expires | Section 17.09 | Owners cannot have an interest in, own, manage, operate, finance, control, or participate in any competitive business within: (i) a 25-mile radius from your Crepe de licious Business or Territory (and including the premises of the Approved Location); and (ii) a 25-mile radius from all other Crepe de licious businesses that are operating or under construction, for two years. |
| s. Modification of the Franchise Agreement | Sections 19.02 and 9.02 | No modifications of the Franchise Agreement during the term unless agreed to in writing, but the Operations Manual is subject to change at any time in our discretion. Modifications are permitted on renewal. |
| t. Integration/merger clause | Section 19.06 | Only the terms of the Franchise Agreement and other related agreements are binding (subject to applicable state law). Any representations or promises outside of this Franchise Disclosure Document and Franchise Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Sections 18.01 and 18.02 | Except for certain claims, all disputes must be mediated in Toronto, Ontario, Canada and arbitrated in Delaware. |
| v. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the location for mediation depends on whether the dispute arises under the Franchise Agreement or the Area Development Agreement. For disputes arising from the Franchise Agreement, mediation must occur in Toronto, Ontario, Canada. However, disputes arising from the Area Development Agreement require mediation at a location within 5 miles of Crepe De Licious's then-current principal place of business.
This distinction is important for prospective franchisees and area developers to understand. Franchisees should be prepared to travel to Toronto for mediation, which could involve significant travel expenses depending on their location. Area developers, on the other hand, will mediate near Crepe De Licious's headquarters, which may change over time.
The FDD also notes that these dispute resolution terms are subject to applicable state laws, which means that certain state franchise laws could override or modify these provisions. Prospective franchisees should consult with a legal professional to understand how these provisions apply in their specific state and to assess the potential costs and burdens associated with mandatory mediation in either Toronto or near the principal place of business of Crepe De Licious.