Are negotiations and mediation proceedings confidential between Buildingstars and the franchisee?

According to Buildingstars's 2025 Franchise Disclosure Document, all negotiations and mediation proceedings between Buildingstars and a franchisee are strictly confidential. This confidentiality extends to discovery conducted during mediation, as well as all statements and settlement offers made by either party or the mediator. These proceedings are treated as compromise and settlement negotiations, protected by the Federal Rules of Evidence and state rules of evidence. As such, this information is not admissible or usable in any court or arbitration proceeding.

This confidentiality clause aims to foster open and honest communication during mediation, encouraging both parties to explore potential resolutions without fear that their statements could be used against them later in court. The mediator is also protected, as they cannot be called as a witness in any subsequent legal proceedings. This encourages impartiality and allows the mediator to facilitate discussions more effectively.

For a prospective Buildingstars franchisee, this means that any attempt to resolve disputes through mediation will be private and protected. While the franchisee is responsible for the cost of mediation, including the mediator's fees and expenses, the confidentiality provision offers a degree of security and encourages good-faith negotiation. This is a fairly standard practice in franchising, as mediation is often preferred as a less costly and more amicable alternative to litigation.