Can statements made during mediation with All Team be used in court or arbitration proceedings?
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 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, all negotiations and mediation proceedings are strictly confidential. This encompasses any discovery conducted, statements made, and settlement offers proposed by either party or the mediator during mediation.
Specifically, these communications are treated as compromise and settlement negotiations under the Federal Rules of Evidence and state rules of evidence. This means that such statements and offers are inadmissible and cannot be used in any court or arbitration proceeding, regardless of the purpose. Furthermore, the mediator is prohibited from being called as a witness in any court or arbitration proceeding.
This provision aims to encourage open and honest communication during mediation, without fear that anything said will be used against a party later in court or arbitration. This confidentiality promotes a more conducive environment for reaching a settlement. However, if mediation fails, All Team and the franchisee must resolve the dispute through litigation or arbitration.