Under what circumstances is the mediation obligation not binding for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, the obligation of this Section to mediate will not be binding with respect to claims brought by ATFC and relating to ATFC's trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, while mediation is generally required before bringing a legal action, there are specific instances where this obligation does not apply to All Team. The mediation requirement is not binding on All Team for claims relating to All Team's trademarks, service marks, patents, or copyrights, including the Marks. Additionally, the mediation obligation does not apply to claims relating to any lease or sublease of any real property between All Team and the franchisee or their affiliated entities.
Furthermore, All Team is not bound by the mediation obligation when it seeks temporary restraining orders, preliminary injunctions, permanent injunctions, or other proceedings in a court of competent jurisdiction. This exception applies when the court deems such actions necessary to preserve the status quo or prevent irreparable injury while the dispute is being resolved.
This means that All Team retains the right to immediately pursue legal action in certain critical situations, such as intellectual property disputes or actions necessary to prevent immediate harm, without first engaging in mediation. For a prospective franchisee, this highlights the importance of understanding the specific circumstances under which All Team may bypass mediation and directly pursue legal remedies, as it could impact the franchisee's legal strategy and costs in the event of a dispute.