Under what circumstances can Bang Cookies elect to bypass the non-binding mediation requirement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding the preceding paragraph, Franchisor and Franchisee agree this Sub-Section 7.6(1) and, thereby, the prerequisite requirement of non-binding mediation, shall not, at Franchisor's election, apply to: (a) any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief; and/or (b) claims by either Franchisor or Franchisee under this Agreement that relates to either Franchisor's or Franchisee's failure to pay fees or other monetary obligations due under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the franchisor has the option to bypass the non-binding mediation requirement in specific situations. Bang Cookies can elect not to require non-binding mediation for claims or disputes related to a franchisee's breach of the Franchise Agreement if the terms of the agreement allow Bang Cookies to seek injunctive relief.
Additionally, Bang Cookies can bypass the non-binding mediation requirement for claims related to the failure of either the franchisor or the franchisee to pay fees or other monetary obligations due under the Franchise Agreement. This means that if there is a dispute over unpaid royalties or other financial obligations, Bang Cookies can choose to proceed directly to arbitration or other legal avenues without first engaging in mediation.
This election is solely at Bang Cookies's discretion. However, with the exception of these two specific scenarios, both Bang Cookies and the franchisee generally must participate in non-binding mediation before pursuing binding arbitration for any disputes arising from the Franchise Agreement.