Does the Crisp & Green FDD specify any circumstances where mediation is required before arbitration?
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, dispute resolution is addressed in Section 18.05 of the Franchise Agreement and Section 9 of the Area Development Agreement. Except for claims for injunctive relief that Crisp & Green may seek against a franchisee, all disputes must be arbitrated. The arbitration will occur in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN, and is subject to applicable state law.
The FDD does not explicitly state that mediation is required before arbitration. However, the table mentions "Dispute resolution by arbitration or mediation," suggesting that mediation may be an option, though not necessarily a mandatory step, before arbitration. The choice of forum for disputes, whether arbitrated or litigated, is also in the city closest to Crisp & Green's headquarters, subject to applicable state law.
Prospective franchisees should note that the laws of Minnesota apply to the agreement, although the Minnesota Franchise Act and other franchise-specific laws may not apply to restaurants located outside of Minnesota. It is important for potential franchisees to seek legal counsel to understand their rights and obligations regarding dispute resolution, choice of forum, and choice of law, as these can significantly impact how disputes are handled and where they take place.