Are disputes regarding the nonpayment of fees subject to mediation for Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for actions or claims for injunctive relief or specific performance or the unauthorized use or disclosure of Franchisor's Trade Secrets or Confidential Information, nonpayment of fees, and actions or claims related to termination of this Agreement for any reason by either party, all claims, disputes and other matters in question bet
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, disputes regarding the nonpayment of fees are explicitly excluded from mandatory mediation. This means that Boulder Designs is not required to engage in mediation for claims related to unpaid fees before pursuing other legal actions.
For a prospective franchisee, this is a significant point. If a franchisee has a dispute with Boulder Designs over fees, the franchisee cannot necessarily expect to resolve the issue through mediation. Boulder Designs retains the right to directly pursue legal remedies without first attempting mediation.
This policy is not uncommon in franchising, as franchisors often want to expedite the resolution of payment disputes. However, it does place the franchisee at a potential disadvantage, as mediation can be a less costly and more collaborative way to resolve conflicts compared to litigation. Franchisees should be aware of this provision and understand that nonpayment of fees could quickly escalate to legal action without the opportunity for mediation.