What is a Buona franchisee prohibited from doing with documents specifically prepared for mediation?

According to Buona's 2025 Franchise Disclosure Document, statements made or evidence specifically prepared for mediation are not admissible for any purpose in subsequent proceedings. This means that if a dispute between Buona and a franchisee goes to mediation, any documents, statements, or other evidence created specifically for that mediation cannot be used later in court or arbitration if the dispute is not resolved during mediation.

This provision aims to encourage open and honest communication during mediation, as parties can speak freely without fear that their words or documents will be used against them in later legal proceedings. It promotes a more collaborative and less adversarial environment during mediation, increasing the chances of reaching a mutually agreeable resolution.

However, it's important to note that this restriction applies only to statements and evidence specifically prepared for mediation. Pre-existing documents or information not created for the mediation would likely still be admissible in subsequent legal proceedings. Additionally, Buona is not obligated to participate in mediation for claims related to the franchisee's use of trademarks, non-disclosure, or non-competition obligations, which could lead directly to injunctive relief.

For a prospective Buona franchisee, this clause offers a degree of protection during mediation. It allows them to present their case and explore potential resolutions without the risk of those efforts being used against them if mediation fails. However, franchisees should still consult with legal counsel to fully understand the implications of this clause and to ensure they are adequately prepared for both mediation and any potential subsequent legal proceedings.