What claims is Buona Franchisor not obligated to mediate?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Franchisor shall have no obligation to mediate before commencing litigation in the following circumstances: (i) In the event Franchisor seeks the entry of temporary and permanent injunctions and orders of specific performance in a court of competent jurisdiction to: (a) enforce the provisions of this Agreement relating to Franchisee's use of the Marks and/or your non-disclosure and non-competition obligations under this Agreement; (b) prohibit any act or omission by Franchisee or Franchisee's employees that constitutes a violation of any applicable law, ordinance or regulation, constitutes a danger to the public, or may impair the goodwill associated with the Marks or cause irreparable harm to Franchise, the System, the Marks and/or other franchises of Franchisor agree to waive any claims for damages in the event there is a later determination that an injunction or specific performance order was issued improperly; (ii) in the event Franchisor is filing suit to enforce Franchisee's obligations to pay Franchisor under this Agreement and to seek collection of such fees due and owing to Franchisor; and (iii) in the event Franchisee has abandoned the Franchised Business or has lost its right to possess the premises of the Franchised Business so that the Franchised Business is no longer operating.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona is not obligated to mediate certain claims before starting litigation. Specifically, Buona does not have to mediate if they are seeking temporary or permanent injunctions and orders of specific performance in court. These actions can include enforcing the franchisee's use of Buona's marks, addressing non-disclosure and non-competition obligations, or stopping actions that violate laws, endanger the public, or harm the goodwill associated with the Buona brand. Franchisees waive damage claims if an injunction or specific performance order is later found to be improperly issued.
Buona is also not obligated to mediate if they are filing suit to enforce the franchisee's payment obligations under the agreement or to collect fees owed to Buona. Additionally, if a franchisee has abandoned the franchised business or lost the right to possess the business premises, preventing its operation, Buona is not required to mediate before commencing litigation.
This means that a Buona franchisee could face immediate legal action from the franchisor without prior mediation in situations involving brand protection, legal compliance, payment defaults, or business abandonment. Franchisees should be aware of these exceptions to the mediation requirement, as they could significantly impact how disputes are resolved and potentially lead to quicker and more direct legal confrontations.