What happens if Buildingstars and the franchisee cannot agree on a mediator?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS and FRANCHISEE will select the mediator. If the parties cannot agree on the selection of a mediator, the mediation shall be conducted through the AAA who will make the selection of mediator using their rules and guidelines. The cost of the Mediation, including the mediator's fee and expenses, shall be paid by the FRANCHISEE. 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. If the parties, after a good faith effort to settle the dispute using Mediation, are unable to reach settlement, BUILDINGSTARS and FRANCHISEE agree that the dispute will be resolved according to the Sections below. Failure to submit the dispute to Mediation prior to commencing any litigation or arbitration proceeding shall be grounds for dismissal of the litigation or arbitration proceedings.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if Buildingstars and the franchisee cannot agree on a mediator, the selection will be handled by the American Arbitration Association (AAA). The AAA will choose the mediator according to their rules and guidelines.
This means a franchisee doesn't have complete control over who the mediator is, but an impartial selection process is in place. It is important to note that the mediation must be conducted in St. Louis County, Missouri, unless both parties agree to another location.
The franchisee is responsible for covering the costs of the mediation, including the mediator's fees and expenses. All discussions and materials from the mediation are confidential and cannot be used in court or arbitration. If mediation doesn't resolve the dispute, Buildingstars and the franchisee will proceed to resolve the dispute as described in further sections of the agreement.
Failure to participate in mediation before starting any legal or arbitration proceedings can result in the dismissal of those proceedings, emphasizing the importance of attempting to resolve disputes through mediation first.