In the event of a dispute with Buona, where will mediation take place?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Mediation shall take place in the Cook County, Illinois.
Prior to mediation, each party involved in mediation shall sign the standard confidentiality agreement reasonably required by Mediator or a confidentiality agreement reasonably required by Franchisor if the Mediator does not have a standard confidentiality agreement.
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.
The parties will share equally all fees and expenses of the mediator, and each part shall bear its own costs otherwise.
Each party hereby agrees that all statements made in the course of mediation shall be strictly confidential, and shall not be disclosed to or shared with any third parties, other than the mediator.
Each party also agrees that any documents or data specifically prepared for use in good faith negotiations and/or mediation shall not be disclosed to or shared with any third party except those parties whose presence is necessary to facilitate the mediation process.
The parties agree not to make copies of any such documents, and to return them to the other party upon the conclusion of the mediation.
Each party agrees and acknowledges that no statements made in, or evidence specifically prepared for mediation shall be admissible for any purpose in any subsequent proceedings.
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, if a dispute arises between Buona and a franchisee, both parties must first attempt to resolve the issue through non-binding mediation before initiating any litigation. The mediation will take place in Cook County, Illinois.
Before the mediation begins, both parties are required to sign a confidentiality agreement. This agreement can either be the standard one used by the mediator or one specifically required by Buona if the mediator does not have a standard agreement. No legal proceedings can start until at least 30 days after the mediator is selected, or if both parties agree that the mediation has failed, or if one party doesn't respond to the mediation request within 30 days.
The costs for the mediator will be shared equally between Buona and the franchisee, but each party is responsible for their own additional expenses. All statements made during the mediation are to be kept confidential and not shared with anyone other than the mediator. Documents prepared specifically for the mediation are also confidential and must be returned to the other party when the mediation concludes. Importantly, any statements made or evidence prepared for the mediation cannot be used in any later legal proceedings.
However, Buona is not required to participate in mediation for claims related to specific performance or injunctive relief, such as enforcing the use of their trademarks or non-competition agreements. This means that if Buona seeks an injunction against a franchisee, they are not obligated to go through mediation first.