Does the mediation requirement apply to Buildingstars' requests 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 Buildingstars' requests for temporary restraining orders. This means that Buildingstars can seek a temporary restraining order against a franchisee without first going through mediation.
This exemption from mediation also extends to claims brought by Buildingstars relating to its trademarks, service marks, patents, or copyrights, including the Marks. It also applies to claims relating to any lease or sublease of any real property between the parties or their affiliated entities. Buildingstars can also seek preliminary injunctions, permanent injunctions, or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief without being subject to mandatory mediation.
This provision allows Buildingstars to quickly seek legal remedies to protect its interests without the delay associated with mediation. For a prospective franchisee, this means that Buildingstars can act swiftly in cases where it believes the franchisee is infringing on its intellectual property, violating lease agreements, or otherwise causing irreparable harm. This clause underscores the importance of franchisees adhering to the franchise agreement to avoid potential legal action by Buildingstars.