What is the confidentiality requirement for negotiations and mediation proceedings involving Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
All negotiations and mediation proceedings (including without limitation, discovery conducted therein, as well as all statements and settlement offers made by either party or the mediator in connection with the Mediation) shall be strictly confidential, shall be considered as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence, and shall not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose. The mediator may not be called as a witness in any court or arbitration proceeding for any purpose.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, all negotiations and mediation proceedings between Buildingstars and a franchisee are strictly confidential. This confidentiality extends to all aspects of the proceedings, including any discovery conducted, statements made, and settlement offers proposed by either party or the mediator.
This means that any information shared or discussed during these negotiations and mediation sessions is considered compromise and settlement negotiations. As such, this information is protected under the Federal Rules of Evidence and state rules of evidence. This protection ensures that none of the disclosed information can be used or admitted as evidence in any subsequent court or arbitration proceedings.
Furthermore, the mediator involved in the Buildingstars dispute resolution process is also prohibited from being called as a witness in any future court or arbitration proceedings. This measure reinforces the confidentiality of the mediation process and encourages open and honest communication between the parties involved, without fear of later repercussions in legal settings. This is a fairly standard practice in franchise agreements, as it promotes candid discussions during mediation.