What is the confidentiality status of negotiations and mediation proceedings related to an All Team franchise dispute?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
All negotiations and mediation proceedings (including without limitation, discovery conducted therein, as well as all statements and settlement offers made by either party or the mediator in connection with the Mediation) shall be strictly confidential, shall be considered as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence, and shall not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose. The mediator may not be called as a witness in any court or arbitration proceeding for any purpose.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, all negotiations and mediation proceedings related to a dispute between All Team Franchise Corporation (ATFC) and the franchisee (USER) are strictly confidential. This confidentiality extends to discovery conducted during mediation, as well as all statements and settlement offers made by either party or the mediator.
This means that any information disclosed or discussed during these proceedings cannot be used in any subsequent court or arbitration proceeding. The document explicitly states that such negotiations are considered compromise and settlement negotiations for the purposes of federal and state rules of evidence, ensuring they are inadmissible in later legal actions. Furthermore, the mediator is prohibited from being called as a witness in any court or arbitration proceeding.
This confidentiality provision aims to encourage open and honest communication during mediation, facilitating a resolution without fear that disclosures will be used against either party in future legal battles. For a prospective All Team franchisee, this offers a level of protection and encourages participation in mediation as a viable means of resolving disputes, knowing that sensitive information shared during the process will remain private and cannot be used to their detriment should the dispute proceed to litigation or arbitration.