Does the FDD specify the applicable state law regarding dispute resolution for Crisp & Green?
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, dispute resolution, choice of forum, and choice of law are subject to applicable state law. Except for claims for injunctive relief that Crisp & Green may seek against a franchisee, all disputes must be arbitrated in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN. 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.
This means that while the franchise agreement specifies arbitration or litigation in Wayzata, MN, the franchisee's state laws regarding dispute resolution will take precedence. This could influence the arbitration process, location, and the laws governing the franchise agreement, depending on the franchisee's location.
For a prospective Crisp & Green franchisee, this indicates that the specific state laws where their restaurant is located could significantly impact how disputes are resolved. It is important to understand the franchise laws in their state and how they interact with the terms outlined in the franchise agreement. Franchisees should seek legal counsel to fully understand their rights and obligations under both the franchise agreement and their state's laws.