What is the required action for a Beggars Pizza franchisee before commencing an action subject to mediation?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Any action, whether or not arising out of, or relating to, the Agreement, brought by Franchisee (or any principal thereof) against Franchisor must be brought in the U.S. District Court for the Northern District of Illinois or, if such court lacks subject matter jurisdiction, in a state court located in Cook County, Illinois; provided, however, that Franchisee will not commence any such action subject to mediation hereunder without complying with Section 25.2.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee must comply with Section 25.2 before starting any action that is subject to mediation. While the document does not explicitly state what Section 25.2 contains, it indicates that compliance with this section is a prerequisite for commencing such legal actions.
This requirement means that a Beggars Pizza franchisee cannot immediately proceed with a lawsuit or other legal action if the matter is subject to mediation. Instead, they must first fulfill the obligations outlined in Section 25.2, which likely involves participating in a mediation process or taking other preliminary steps.
This clause is included to encourage dispute resolution through mediation before resorting to litigation. Franchisees should carefully review Section 25.2 of the Franchise Agreement to understand their specific obligations before initiating any legal action against Beggars Pizza. Since the contents of Section 25.2 are not included in the provided documentation, it is important for prospective franchisees to seek clarification from Beggars Pizza regarding the specific requirements of this section.