What is the consequence of failing to submit a dispute to Mediation before starting litigation or arbitration proceedings against Buildingstars?

According to Buildingstars's 2025 Franchise Disclosure Document, failure to submit a dispute to mediation before starting litigation or arbitration proceedings can result in the dismissal of those proceedings. This means that if a franchisee has a dispute with Buildingstars and decides to immediately pursue legal action without first attempting mediation, the court or arbitrator may dismiss the case.

Mediation is a process where a neutral third party helps the disputing parties reach a mutually agreeable resolution. It is a common practice in franchising to encourage mediation before resorting to more costly and time-consuming litigation or arbitration. The FDD specifies that mediation should occur in St. Louis County, Missouri, unless both parties agree to another location. The franchisee bears the cost of mediation, including the mediator's fees and expenses.

This requirement to mediate first is intended to save both Buildingstars and its franchisees time and money by resolving disputes amicably. However, it's important to note that this obligation to mediate does not apply to claims brought by Buildingstars relating to their trademarks, service marks, patents, or copyrights; claims relating to any lease or sublease of real property; or requests for temporary restraining orders or injunctions to prevent irreparable injury. In those specific cases, Buildingstars can pursue legal action directly without mediating first.