Does the obligation to mediate apply to claims brought by Buildingstars relating to a lease or sublease?
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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the obligation to mediate does not apply to claims brought by Buildingstars relating to a lease or sublease of any real property between the parties or their affiliated entities. This means that Buildingstars is not required to participate in mediation for disputes related to leases or subleases.
This exception to mediation allows Buildingstars to directly pursue legal action in court for lease or sublease disputes without first attempting to resolve the issue through mediation. This could be advantageous for Buildingstars in situations where they believe a quick resolution is necessary or where mediation is unlikely to be successful.
For a prospective franchisee, this means that if a dispute arises with Buildingstars over a lease or sublease, Buildingstars can immediately take the matter to court. The franchisee should be aware of this and understand that they may face legal action from Buildingstars without the opportunity for mediation in these specific types of disputes. It is important to carefully review any lease or sublease agreements and understand the potential legal ramifications.