Does Crisp & Green require arbitration for all disputes, or are there exceptions?
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 generally involves arbitration, but there are exceptions. Specifically, Crisp & Green may seek injunctive relief against the franchisee, which would not be subject to mandatory arbitration. All other disputes are required to be arbitrated in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN, subject to applicable state law.
This means that if a franchisee has a dispute with Crisp & Green, they will likely have to go through arbitration rather than a traditional lawsuit. Arbitration is often seen as a faster and less expensive way to resolve disputes, but it also means that the franchisee will have limited rights to discovery and appeal. The location of the arbitration in Wayzata, MN, could also add to the franchisee's expenses if they are located far from there.
It's important to note that the requirement to arbitrate is subject to applicable state law, which means that some states may have laws that limit the enforceability of arbitration agreements. Prospective Crisp & Green franchisees should consult with an attorney to understand the laws in their state and how they may affect their rights. The franchisee should also carefully review the franchise agreement and area development agreement to understand the specific terms of the arbitration provision.