Are there any exceptions to the requirement to mediate and arbitrate Beard Papas franchise disputes?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Los Angeles County, California and, if mediation is unsuccessful, then to binding arbitration in Los Angeles County, California. This provision is subject to applicable state law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, there are exceptions to the requirement to mediate and arbitrate disputes. Specifically, the document states that the requirement to first submit disputes to non-binding mediation and then binding arbitration in Los Angeles County, California does not apply to "certain claims for injunctive relief".
This means that Beard Papas can seek immediate court orders (injunctions) to stop a franchisee from actions that could cause immediate harm without going through mediation or arbitration first. This is a fairly common exception in franchise agreements, as it allows the franchisor to quickly address issues like trademark infringement or breaches of confidentiality.
It is also important to note that these dispute resolution provisions are subject to applicable state law, which could potentially modify or limit the requirements for mediation and arbitration. A prospective franchisee should consult with a legal professional to understand how these provisions and any applicable state laws would affect them.