Can either party request binding arbitration for a Crepe De Licious dispute?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
he Marks, the System, or in any of our trade secrets or confidential information; (b) any claims pertaining to or arising out of any warranty issued; or (c) any of the restrictive covenants contained in this Agreement. We and you (and your owners) agree that the mediation provision shall apply during the term of this Agreement and following the termination, expiration or non-renewal of this Agreement.
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. At this preliminary conference, the date for the hearing will be set which will not, unless both parties agree, be more than 60 days after the date of the preliminary conference. At the preliminary conference, the arbitrator will set forth the procedures to be followed at the hearing.
- (d) Discovery. Should a dispute arise over the extent of or propriety of any discovery request, the arbitrator will make a final determination after hearing each party's position. All discovery must be completed within 45 days after the preliminary conference, unless otherwise agreed by the parties.
- (e) Statement of Case. At least 5 days before the scheduled hearing, each party must deliver to the arbitrator and to the other party a written summary of its position on the issues in dispute.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, both the franchisee and Crepe De Licious can request binding arbitration to settle disputes that arise from the franchise agreement if informal negotiations fail. This process is initiated by providing a written demand to the other party, which then obligates both parties to participate in arbitration. The demand must be made within the applicable statute of limitations and include details about the dispute, the amount involved (if any), and the remedies sought. Importantly, a demand for arbitration does not halt any termination of the Franchise Agreement.
The arbitration will be conducted in Delaware (or where Crepe De Licious has its principal place of business) following the National Arbitration Rules of the ADR (presumably, the American Arbitration Association). A single arbitrator, experienced in legal disputes and with at least 10 years in law or franchising, will preside. The parties must agree on the arbitrator's selection within 30 days of the arbitration demand; otherwise, the ADR will appoint one. A preliminary conference will occur within 10 days of the arbitrator's appointment to establish discovery parameters, including document production, witness identification, and depositions.
This arbitration clause survives the termination, expiration, or non-renewal of the agreement. However, both parties retain the right to seek provisional remedies, such as restraining orders or injunctive relief, from a court of competent jurisdiction, even while pursuing arbitration. Seeking such remedies does not waive the right to compel arbitration. This means that while Crepe De Licious and its franchisees agree to resolve disputes through arbitration, they can still turn to the courts for urgent, temporary relief if necessary.