If Buildingstars and the franchisee cannot agree on a mediator, how is the mediator selected?
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.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if Buildingstars and the franchisee cannot agree on a mediator, the American Arbitration Association (AAA) will select the mediator. The selection will be made using the AAA's rules and guidelines. The mediation itself, however, does not have to be conducted under the AAA.
This process is part of the dispute resolution process outlined in the franchise agreement, which requires mediation before any legal action is taken. The mediation is to take place in St. Louis County, Missouri, unless both parties agree to a different location. The mediation will follow the AAA Mediation Rules, unless those rules conflict with the franchise agreement, in which case the agreement prevails.
The franchisee is responsible for covering the costs of the mediation, including the mediator's fees and expenses. All discussions and offers made during the mediation are confidential and cannot be used in any subsequent court or arbitration proceedings. Failure to participate in mediation before starting litigation or arbitration can result in dismissal of those proceedings.