Does the obligation to mediate 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 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 requests by Buildingstars for temporary restraining orders. Buildingstars is not required to participate in mediation for claims relating to its trademarks, service marks, patents, or copyrights. Additionally, Buildingstars is not required to mediate claims relating to any lease or sublease of real property between the parties or their affiliated entities.
This means that Buildingstars can seek immediate legal remedies, such as temporary restraining orders, without first attempting to resolve the issue through mediation. This is a common exception in franchise agreements, as it allows the franchisor to quickly protect its brand and business interests from potential harm.
For a prospective franchisee, this clause indicates that Buildingstars prioritizes swift action in certain disputes and is not obligated to delay legal proceedings by engaging in mediation. While mediation can be a cost-effective and collaborative way to resolve conflicts, Buildingstars retains the right to bypass this step in situations where it deems immediate legal intervention necessary to protect its interests.