Does the mediation obligation apply to requests by Buildingstars for temporary restraining orders?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, the obligation of this Section to mediate will not be binding with respect to claims brought by BUILDINGSTARS and relating to BUILDINGSTARS's trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by BUILDINGSTARS for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the obligation to mediate disputes does not apply to requests for temporary restraining orders initiated by Buildingstars. This means that Buildingstars can seek immediate legal relief, such as a temporary restraining order, without first engaging in mediation with the franchisee.
This exception to the mediation requirement also extends to claims brought by Buildingstars relating to its trademarks, service marks, patents, or copyrights, including the Marks, and claims relating to any lease or sublease of any real property between the parties or their affiliated entities. Additionally, Buildingstars is not obligated to mediate before seeking preliminary injunctions, permanent injunctions, or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief.
This provision allows Buildingstars to act swiftly to protect its interests and prevent potential irreparable harm. However, for all other disputes arising from the franchise agreement or relationship, both Buildingstars and the franchisee are generally required to participate in nonbinding mediation before initiating any court action, with the cost of mediation borne by the franchisee.