Besides informal resolution, what other method is mentioned as an alternative to arbitration for disputes related to the Buona Franchise Agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| l. | Yes | No | Have you received the completed Franchise Agreement and each exhibit attached to it? |
|---|---|---|---|
| 2. | Yes | No | Have you received the Franchise Disclosure Document we provided? |
| 3. | Yes | No | If you are purchasing a Buona/Rainbow Cone Dual Brand franchise, did you also receive the Five Flavors Franchising, LLC Franchise Disclosure Document? |
| 4. | Yes | No | Did you sign a receipt for the Franchise Disclosure Document (or both of them) indicating the date you received it? |
| 5. | Yes | No | Did the receipt for the Franchise Disclosure Document identify the franchise sellers with which you have had discussions about the franchise opportunity? |
| 6. | Yes | No | If you are entering into an Area Development Agreement, have you received the completed Area Development Agreement and each exhibit? |
| 7. | Yes | No | Have you spoken with existing Buona franchisees about the Buona Business? |
| 8. | Yes | No | Have you conducted an independent investigation of a Buona Business? |
| 9. | Yes | No | Do you understand all disputes or claims you may have arising out of or relating to the Franchise Agreement must be arbitrated in Illinois, if not resolved informally or by mediation? |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, disputes arising from the Franchise Agreement can be resolved through informal means or mediation before resorting to arbitration. Specifically, question 9 in Item 22 addresses whether the applicant understands that disputes must be arbitrated in Illinois if not resolved informally or by mediation. This indicates that mediation is an alternative dispute resolution method available to franchisees.
This means that if a dispute arises between Buona and a franchisee, both parties are encouraged to first attempt to resolve it informally through discussions and negotiations. If an informal resolution is not possible, the next step is to engage in mediation, a process where a neutral third party helps facilitate a resolution.
Only if both informal resolution and mediation fail is the dispute required to be submitted to binding arbitration in Illinois. This multi-step approach aims to reduce the costs and time associated with resolving disputes, as arbitration and litigation can be expensive and time-consuming. By encouraging informal resolution and mediation, Buona and its franchisees can potentially maintain a more collaborative and less adversarial relationship.