If Buildingstars and the franchisee cannot agree on a mediator, who selects the 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, in the event that Buildingstars and the franchisee are unable to agree on a mediator, the selection of the mediator will be conducted through the American Arbitration Association (AAA). The AAA will then make the selection of the mediator, utilizing their established rules and guidelines for the selection process.
This stipulation ensures that there is a neutral process for selecting a mediator if Buildingstars and the franchisee reach an impasse. By deferring to the AAA's rules and guidelines, the selection process is designed to be impartial and fair, preventing either party from having undue influence over the choice of mediator. This can be particularly important in maintaining a level playing field during dispute resolution.
For a prospective Buildingstars franchisee, this means that they will not be left without recourse if they and Buildingstars cannot agree on a mediator. The involvement of the AAA provides a structured and independent method for resolving the selection issue, allowing the mediation process to proceed. However, the franchisee should be aware that they are responsible for covering the costs of the mediation, including the mediator's fees and expenses, regardless of who selects the mediator.