Where must disputes be arbitrated or litigated for 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 Crisp & Green's 2024 Franchise Disclosure Document, disputes with the company must be arbitrated or litigated in the city closest to their corporate headquarters, which is currently Wayzata, MN. This requirement is subject to applicable state law, meaning that local laws could potentially override this clause. This applies to both the Franchise Agreement (Section 18.07) and the Area Development Agreement (Section 9).
For a prospective Crisp & Green franchisee, this means that any legal disputes that arise with the franchisor, unless it involves claims for injunctive relief that Crisp & Green seeks against the franchisee, will likely need to be resolved in Wayzata, Minnesota. This could involve significant travel expenses and the inconvenience of dealing with legal proceedings far from the franchisee's home or business location. It is important to note the exception for injunctive relief, which allows Crisp & Green to pursue such claims against the franchisee outside of arbitration.
This type of forum selection clause is relatively common in franchise agreements, as it allows the franchisor to manage legal disputes in a location convenient for them. However, franchisees should be aware of the potential costs and burdens associated with this requirement. Franchisees should consult with a legal professional to understand their rights and obligations under the franchise agreement and to assess the potential impact of the forum selection clause.
It is also important to note that Minnesota law applies to the franchise agreement, although 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. This means that while the agreement is governed by Minnesota law, certain protections offered by Minnesota's franchise laws may not extend to franchisees operating outside the state.