Under what circumstances is the mediator prohibited from being called as a witness in a court or arbitration proceeding related to a Buildingstars franchise?

According to Buildingstars's 2025 Franchise Disclosure Document, the mediator in a dispute resolution process is prohibited from being called as a witness in any court or arbitration proceeding, regardless of the purpose. This protection ensures the confidentiality and integrity of the mediation process.

This provision is designed to encourage open and honest communication during mediation, as parties can be more candid without fear that the mediator will later testify against them. The confidentiality extends to all negotiations and mediation proceedings, including discovery, statements, and settlement offers, which are treated as compromise and settlement negotiations under the Federal Rules of Evidence and state rules of evidence. This means that nothing disclosed during mediation can be used in subsequent legal proceedings.

For a prospective Buildingstars franchisee, this clause offers a level of assurance that the mediation process will remain private and that the mediator's role is strictly to facilitate a resolution, not to become involved in future litigation or arbitration. It is a fairly standard practice in franchise agreements to maintain the confidentiality of mediation proceedings to promote effective dispute resolution.