Where will the non-binding mediation with Buff City Soap take place?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Non-Binding Mediation. Before any Party may bring an action or commence a proceeding against the other Party, the Parties must first meet to mediate the dispute (except for controversies, disputes or claims related to or based on improper or unauthorized use of the Marks or breach of the covenants and obligations set forth in Section 19(a) or Section 19(b)) in Dallas, Texas or such other location agreed upon by the Parties. Any such mediation will be non-binding and will be conducted by the International Institute for Conflict Prevention & Resolution in accordance with its then-current rules for mediation of commercial disputes.
Notwithstanding anything to the contrary, this Section 26 will not bar either Party from obtaining injunctive relief pursuant to Section 26(d)(5) against threatened conduct that will cause it to incur Losses and Expenses, under the usual equity rules, including the applicable rules for obtaining restraining orders and injunctions, without having to engage in mediation. In addition, this Section 26(a) will not apply to any claim or dispute relating to Franchisee's failure to make payments for Royalty Fees, Brand Fund Contribution or other amounts owed to Franchisor under this Agreement. Franchisor and Franchisee will each bear their own costs of mediation, and each will bear one-half the cost of the mediator or mediation service.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 FDD, the non-binding mediation with Buff City Soap will take place in Dallas, Texas, or another location agreed upon by both parties. This applies before either party can initiate a formal action or proceeding against the other. The mediation will be conducted by the International Institute for Conflict Prevention & Resolution, following its rules for commercial disputes.
However, there are exceptions to this mediation requirement. Buff City Soap or the franchisee can seek injunctive relief to prevent actions that would cause losses or expenses without first engaging in mediation. Additionally, disputes over the franchisee's failure to pay fees or other amounts owed to Buff City Soap are also exempt from the mediation requirement.
Both Buff City Soap and the franchisee will bear their own costs associated with the mediation. They will also split the costs of the mediator or mediation service equally. This arrangement is typical in franchising, where both parties are expected to share the responsibility for resolving disputes through mediation before resorting to litigation.