Can statements made during a Crepe De Licious arbitration be used for impeachment in other litigation?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The entire arbitration proceedings and related documents are confidential.
Except as necessary to enforce the decision of the arbitrator hereunder, all conduct, statements, promises, offers, views and opinions, whether oral or written, made in the course of the arbitration by any of the parties, their agents, employees or representatives and by the arbitrator, are confidential.
These matters will not be discoverable or admissible for any purposes, including impeachment, in any litigation or other proceeding involving the parties, and will not be disclosed to anyone who is not an agent, employee, expert witness, or representative for any of the parties; however, evidence otherwise discoverable or admissible is not excluded from discovery or admission as a result of its use in the arbitration.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, statements made during arbitration proceedings are generally confidential and protected from use in other legal contexts. Specifically, all conduct, statements, promises, offers, views, and opinions, whether oral or written, made during the arbitration by any party involved, including their agents, employees, or representatives, as well as the arbitrator, are considered confidential.
This confidentiality provision means that these statements cannot be discovered or admitted for any purpose, including impeachment, in any litigation or other proceeding involving the parties. This protection ensures that parties can engage in open and honest discussions during arbitration without fear that their words will be used against them in future legal battles. However, it's important to note that any evidence that is otherwise discoverable or admissible does not become excluded simply because it was also used in the arbitration.
For a prospective Crepe De Licious franchisee, this confidentiality clause offers a degree of security and encourages participation in the arbitration process if disputes arise. Franchisees can be more candid during arbitration, knowing that their statements are shielded from use in other legal proceedings. However, franchisees should also be aware that this protection does not extend to evidence that could be obtained through other means; the confidentiality applies specifically to statements made within the arbitration itself.