Does the Crisp & Green FDD specify who is responsible for selecting the arbitration service?
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)
The 2024 Crisp & Green Franchise Disclosure Document (FDD) outlines the dispute resolution process, but it does not explicitly state who is responsible for selecting the arbitration service. The FDD indicates that disputes, except for those seeking injunctive relief, must be arbitrated in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN. This requirement applies subject to applicable state law. The choice of forum for disputes, whether arbitrated or litigated, is also the city closest to Crisp & Green's headquarters, again subject to state law. Minnesota law governs the franchise agreement, although the Minnesota Franchise Act may not apply to restaurants outside of Minnesota.
Because the FDD does not specify the selection process for the arbitration service, prospective franchisees should seek clarification from Crisp & Green regarding the procedure for choosing an arbitrator or arbitration service. Understanding this process is crucial, as the selected arbitrator can significantly influence the outcome of any dispute. Franchisees should inquire about whether they have any input in the selection process or if Crisp & Green solely determines the arbitration service.
It is common practice in franchising for the franchise agreement to outline the method of selecting an arbitration service, often involving a neutral third party like the American Arbitration Association (AAA) or JAMS. The agreement may specify a procedure where both parties propose potential arbitrators, or it might delegate the selection to the chosen arbitration organization. Without this information, franchisees may find themselves in a position where they have limited control over the dispute resolution process, potentially leading to perceived unfairness or bias. Therefore, it is essential for potential Crisp & Green franchisees to obtain clear information on this matter before entering into a franchise agreement.