Does the mediation requirement apply to Buildingstars' claims relating to leases?
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, Buildingstars is not obligated to mediate claims relating to any lease or sublease of real property between the parties or their affiliated entities. This means that if Buildingstars has a dispute with a franchisee regarding a lease, Buildingstars can directly pursue legal action without first going through mediation.
This exception to the mediation requirement benefits Buildingstars, as it allows them to expedite the resolution of lease-related disputes. Lease disputes can be time-sensitive, especially if they involve issues like eviction or property damage. By bypassing mediation, Buildingstars can potentially save time and money in resolving these disputes.
For a prospective Buildingstars franchisee, this means that disputes with Buildingstars related to leases will likely be handled more quickly and directly in court, without the opportunity for a mediated settlement. Franchisees should be aware of this and understand their rights and obligations under any lease agreements with Buildingstars or its affiliates. Franchisees should seek legal counsel to fully understand the implications of this clause.