Does the Crisp & Green FDD mention any specific arbitration rules that apply to disputes?
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 are addressed through arbitration or mediation, as detailed in Section 18.05 of the Franchise Agreement and Section 9 of the Area Development Agreement. Except for claims seeking injunctive relief, which Crisp & Green may pursue against the franchisee, all disputes must be arbitrated. The location for arbitration or litigation is specified as the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN.
This means that if a franchisee has a dispute with Crisp & Green, they will likely need to engage in arbitration rather than pursuing a lawsuit in a traditional court, unless the matter involves Crisp & Green seeking injunctive relief. The arbitration or litigation will take place in Wayzata, Minnesota, regardless of where the franchisee's restaurant is located. This could create additional costs and logistical challenges for franchisees located far from Minnesota.
The FDD also states that Minnesota law governs disputes, although this is subject to applicable state law. However, 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 could limit the protections available to franchisees operating outside of Minnesota under franchise-specific laws.
Prospective franchisees should carefully review Section 18.05 of the Franchise Agreement and Section 9 of the Area Development Agreement to fully understand the dispute resolution process, including the scope of arbitration, the procedures for initiating a claim, and the potential costs involved. They should also consult with an attorney to understand how these provisions may affect their rights and obligations under the franchise agreement, especially considering the choice of law and forum.