Is mediation binding for disputes with Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
|---|---|---|---|
| t. | Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to the Franchise Agreement and the respective signed exhibits to the Franchise Agreement are binding, subject to state law. Nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments. |
| u. | Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Bergen County, New Jersey and, if mediation is unsuccessful, then to binding arbitration in Bergen County, New Jersey. This provision is subject to applicable state law. |
| v. | Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings must be conducted in, or closest to, State court of general jurisdiction that is within or closest to Bergen County, New Jersey. This provision is subject to applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–49)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, mediation is not binding. The FDD states that, with the exception of claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Bergen County, New Jersey. If mediation is unsuccessful, the dispute will then proceed to binding arbitration, also in Bergen County, New Jersey. This process is subject to applicable state law.
For a prospective Bang Cookies franchisee, this means that if a dispute arises with the franchisor, they are first required to attempt to resolve it through mediation. Because the mediation is non-binding, both Bang Cookies and the franchisee have to agree to any resolution achieved during mediation. Either party can reject the outcome of mediation.
If mediation fails to resolve the dispute, the next step is binding arbitration. In arbitration, a neutral third party will make a decision that both Bang Cookies and the franchisee must legally abide by. The requirement to mediate and arbitrate in Bergen County, New Jersey means that regardless of where the franchise is located, the franchisee will likely incur travel costs to attend these proceedings.