Does Crisp & Green require all disputes to be arbitrated?
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, disputes between the franchisee and franchisor must be arbitrated, with a specific exception. Except for claims for injunctive relief that Crisp & Green may seek against the franchisee, all disputes must be arbitrated. This arbitration is required to take place in the city closest to Crisp & Green's corporate headquarters, which is currently Wayzata, MN, although this is subject to applicable state law.
This means that a franchisee would likely need to travel to Wayzata, Minnesota, to resolve most disputes with Crisp & Green through arbitration. Arbitration generally involves presenting evidence and arguments to a neutral arbitrator, who then makes a decision. The location of arbitration can add to a franchisee's expenses, as they may need to pay for travel, accommodation, and local legal representation.
Additionally, the FDD states that choice of forum is subject to applicable state law, disputes must be arbitrated or litigated in the city closest to Crisp & Green’s corporate headquarters (currently Wayzata, MN). Also, the choice of law dictates that, subject to applicable state law, Minnesota law applies. However, 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.