Does the Crisp & Green Area Development Agreement have a different dispute resolution process than the Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| or Other Agreement | |||
| u. Dispute resolution by arbitration or mediation | Section 18.05 – Franchise Agreement and Section 9 – Area Development Agreement | Except for claims for injunctive relief, we make seek against you, all disputes must be arbitrated in the city closest to our corporate headquarters (currently Wayzata, MN). Subject to applicable state law. | |
| v. Choice of forum | Section 18.07 – Franchise Agreement and Section 9 – Area Development Agreement | Subject to applicable state law, disputes must be arbitrated or litigated in the city closest to our corporate headquarters (currently Wayzata, MN). | |
| w. Choice of law | Section 18.08 – Franchise Agreement and Section 9 – Area Development Agreement | Subject to applicable state law, Minnesota law applies, provided that the Minnesota Franchise Act and other franchise-specific laws and regulations of the State of Minnesota generally do not apply to Restaurants located outside of Minnesota. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 52–57)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the dispute resolution processes for both the Franchise Agreement and the Area Development Agreement are substantially similar.
Specifically, both agreements stipulate that, except for claims seeking injunctive relief, all disputes must be resolved through arbitration. This arbitration is to take place in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN. This requirement is subject to applicable state law, meaning that local regulations could potentially influence the arbitration process or venue.
Furthermore, the choice of forum for both arbitration and litigation is the same, also being the city closest to Crisp & Green's headquarters in Wayzata, MN, again subject to applicable state law. The governing law for both agreements is Minnesota law, although the Minnesota Franchise Act and other franchise-specific laws may not apply to restaurants located outside of Minnesota. Therefore, while the agreements share a similar framework for dispute resolution, franchisees should be aware of how state laws could impact the process depending on their restaurant's location.