Are there any exceptions to the non-binding mediation requirement before litigation for 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Non-Binding Mediation. Unless otherwise provided in this Agreement, and with the exception of injunctive relief or specific performance actions, before the filing of any litigation, Franchisee and Franchisor agree to mediate any dispute, controversy or claim between Franchisor and/or
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, before filing any litigation, both the franchisee and franchisor must mediate any dispute. However, there are exceptions to this mediation requirement. Specifically, the obligation to participate in non-binding mediation does not apply to actions seeking injunctive relief or specific performance.
This means that 360 Painting or the franchisee can bypass mediation and immediately pursue legal action in cases where they seek a court order to either compel a party to do something (specific performance) or to stop a party from doing something (injunctive relief). Injunctive relief is typically sought when one party believes it will suffer irreparable harm if immediate action is not taken.
For a prospective 360 Painting franchisee, this is important to understand because it outlines the process for resolving disputes with the franchisor. While mediation is generally required, there are specific circumstances where immediate legal action is permitted, potentially expediting the resolution of critical issues. Franchisees should consult with legal counsel to understand their rights and obligations regarding dispute resolution.