What is the role of the ADR Institute of Canada in Crepe De Licious mediation?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
18.01 Mediation. Except as set forth in Section 18.03 below, all claims or disputes between you and us or our affiliates arising out of, or in any way relating to, this Agreement, or any of the parties' respective rights and obligations arising out of this Agreement, shall be submitted first to mediation prior to a hearing in binding arbitration or a trial court proceeding. Such mediation shall take place in Toronto, Ontario, Canada (or our then-current headquarters) under the auspices of the ADR Institute of Canada ("ADR"), in accordance with ADR's Commercial Mediation Rules then in effect. You may not commence any action against us or our affiliates with respect to any such claim or dispute in any court unless mediation proceedings have been terminated either: (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written declaration by us. The parties shall each bear their own costs of mediation and shall share equally the filing fee imposed by ADR and the mediator's fees. We reserve the right to specifically enforce our right to mediation. Prior to mediation, and before commencing any legal action against us or our affiliates with respect to any such claim or dispute, you must submit a notice to us, which specifies in detail, the precise nature and grounds of such claim or dispute. We shall not be required to first attempt to mediate or arbitrate a controversy, dispute or claim against you through mediation or arbitration as set forth in Section 18 if such controversy, dispute or claim concerns an allegation by us that you have violated (or threaten to violate, or pose an imminent risk of violating): (a) any of our federally protected intellectual property rights in the 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.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the ADR Institute of Canada (ADR) plays a central role in mediating disputes between the franchisee and franchisor. Specifically, any claims or disputes arising from the Franchise Agreement must first be submitted to mediation under the auspices of the ADR before proceeding to binding arbitration or a trial court. This mediation takes place in Toronto, Ontario, Canada, or at Crepe De Licious's headquarters, following ADR's Commercial Mediation Rules.
The role of ADR is to provide a structured framework for mediation. Both parties are responsible for their own mediation costs, while equally sharing the filing fees imposed by ADR and the mediator's fees. This process aims to resolve conflicts efficiently and fairly, potentially avoiding more costly and time-consuming litigation.
However, Crepe De Licious reserves the right to enforce its right to mediation and is not required to mediate or arbitrate claims against a franchisee if the dispute involves violations (or threatened violations) of intellectual property rights, warranty claims, or restrictive covenants within the agreement. Before initiating any legal action, the franchisee must provide detailed written notice to Crepe De Licious outlining the nature and grounds of the claim. This mediation provision applies throughout the term of the Franchise Agreement and even after its termination, expiration, or non-renewal.