Where will arbitration proceedings be conducted for disputes involving Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
that unless otherwise agreed in writing, neither side shall be permitted to disclose any settlement discussions to the arbitrators for any reason and that the arbitrators may not consider any settlement discussions or offers that might have been made by either you or us prior to commencing the arbitration proceeding.
- (d) The arbitration proceedings shall be conducted in the city closest to our principal place of business and shall be conducted in accordance with the then-current commercial arbitration rules of the AAA, except as modified by this Agreement. The parties shall be entitled to limited discovery at the discretion of the arbitrators but in no event shall the arbitrators order the taking of depositions without the parties' prior agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, arbitration proceedings will be conducted in the city closest to Crisp & Green's principal place of business, following the commercial arbitration rules of the American Arbitration Association (AAA) as modified by the franchise agreement. Prior to any arbitration action with AAA, the parties must participate in pre-arbitration mediation.
However, there are exceptions to this rule for franchisees in certain states. For franchises purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. For franchises in Maryland, although the franchise agreement and area development agreement require litigation to be held in the city where Crisp & Green's principal executive office is located, a franchisee may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, subject to the mediation and arbitration provisions of the franchise agreement and area development agreement.
These stipulations mean that while Crisp & Green generally prefers arbitration to occur near its headquarters, state laws can override this. It is important for prospective franchisees to understand that the location of arbitration can significantly impact costs and convenience. Franchisees should consult with a legal professional to understand their rights and obligations regarding dispute resolution, particularly concerning the laws of their specific state.