For Crisp & Green franchise disputes, is litigation an option in addition to 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 Crisp & Green's 2024 Franchise Disclosure Document, both arbitration and litigation are potential options for dispute resolution. The FDD indicates that, subject to applicable state law, disputes can be either arbitrated or litigated. The specific forum for these proceedings, whether arbitration or litigation, will be in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN.
However, there is an exception: Crisp & Green can seek injunctive relief against the franchisee, which is not subject to the arbitration requirement. This means that Crisp & Green can pursue litigation for claims seeking injunctive relief, regardless of the general arbitration requirement.
It's important to note that Minnesota law will govern the franchise agreement, although the Minnesota Franchise Act and other franchise-specific laws may not apply to restaurants located outside of Minnesota. This could have implications for franchisees depending on their location and the specific nature of the dispute.