If mediation is required for a Boulder Designs franchise in South Dakota, where should the mediation be conducted?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 23.7, of the Franchise Agreement is amended by the addition of the following language to the original language that appears therein: "In the event that either party shall make demand for mediation, such mediation shall be conducted in a mutually agreed upon site.
The mediation proceeding shall take place in the McLennan County, Texas.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee in South Dakota makes a demand for mediation, the mediation site should be mutually agreed upon by both parties. The FDD states that Section 23.7 of the Franchise Agreement is amended to reflect this.
However, the FDD also states that the mediation proceeding shall take place in McLennan County, Texas. This creates a conflict, as the South Dakota addendum aims to ensure a mutually agreed-upon site, while the original agreement specifies Texas.
To clarify this discrepancy, a prospective Boulder Designs franchisee in South Dakota should seek clarification from the franchisor regarding which provision takes precedence. They should confirm whether the mediation site is indeed subject to mutual agreement or if McLennan County, Texas, is the default location.