What is the deadline for commencing litigation against Buona after requesting mediation?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
No litigation proceeding may be commenced until the earlier of thirty (30) days from the selection of the Mediator, or the mutual agreement by both parties that mediation has been unsuccessful, or if the notified party fails to respond to the requesting party within thirty (30) days of the delivery of notice requesting mediation.
Notwithstanding the foregoing, Franchisor shall have no obligation to mediate claims that are the subject of Paragraph 12.2 herein.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, before initiating litigation, both parties must first attempt to resolve disputes through non-binding mediation in Cook County, Illinois. A confidentiality agreement is required before mediation.
Litigation cannot start until one of the following conditions is met: either 30 days have passed since the selection of the mediator, both parties agree that mediation has failed, or the notified party does not respond to the mediation request within 30 days of receiving the notice. This means a franchisee must wait for the earliest of these three conditions to be met before starting a lawsuit against Buona.
Buona is not obligated to participate in mediation for claims related to seeking injunctions or specific performance, or for actions concerning the franchisee's use of trademarks, non-disclosure, or non-competition obligations. This also applies if Buona is enforcing the franchisee's payment obligations or if the franchisee has abandoned the business. This could allow Buona to bypass mediation and proceed directly to litigation in certain situations, potentially accelerating the legal process.