Who bears the cost of arbitration or litigation for disputes involving a Crisp & Green franchise?
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 the 2024 Crisp & Green Franchise Disclosure Document, the FDD does not specify who bears the cost of arbitration or litigation. However, it does state that except for claims for injunctive relief that Crisp & Green may seek against the franchisee, all disputes must be arbitrated in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN. This is subject to applicable state law. Disputes must be arbitrated or litigated in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN, subject to applicable state law. Minnesota law applies, subject to applicable state law, 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.
Because the FDD does not specify who bears the costs of arbitration or litigation, prospective franchisees should seek clarification from Crisp & Green regarding this matter. Understanding the financial responsibilities associated with dispute resolution is crucial for assessing the overall financial risk of investing in a Crisp & Green franchise. Franchise agreements often include clauses addressing cost allocation in dispute resolution, and it is important to understand these obligations before entering into the agreement.
In the absence of explicit details in the FDD, it is common practice for franchisees to negotiate these terms during the franchise agreement review process. Factors such as the nature of the dispute, the governing state law, and the specific terms outlined in the franchise agreement can influence how costs are allocated. Therefore, prospective Crisp & Green franchisees should consult with legal counsel to fully understand their rights and obligations regarding dispute resolution costs.