For Bang Cookies, what is the dependency between mediation and arbitration?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Article 18.G. of the Franchise Agreement, and if Franchisee executes a Development Agreement, Article 7.6 of the Development Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.G. of the Franchise Agreement and Article 7.6 of the Development Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, the relationship between mediation and arbitration is not explicitly detailed. However, the Illinois Franchise and Development Agreement Amendment included in Item 23 states that Article 18.G of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", will be amended to include the statement that Illinois law governs the agreements between the parties to the franchise.
This suggests that while the franchise agreement may include provisions for both non-binding mediation and binding arbitration, the specifics of how these processes interact or whether mediation is a required step before arbitration is not fully clarified in the provided excerpts.
A prospective Bang Cookies franchisee should seek clarification from the franchisor regarding the dispute resolution process, specifically asking whether mediation is a mandatory prerequisite to arbitration and what rules or guidelines govern the mediation process. Understanding these procedures is crucial for franchisees to be aware of their rights and obligations in case of a dispute.