What is the franchisee required to do regarding confidentiality agreements prior to mediation with Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
24.1 Mediation. Except as otherwise specifically provided herein, prior to the initiation of litigation by either party pursuant to this Agreement, the parties must make a good faith effort to resolve any controversies between them by non-binding mediation either through a mutually acceptable mediator or through an established mediation service selected by Franchisor (in either case, "Mediator"). 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, prior to mediation, each party, including the franchisee, must sign a confidentiality agreement. This agreement can be either Buona's standard confidentiality agreement or one reasonably required by the mediator if the mediator has a standard agreement. The mediation itself will take place in Cook County, Illinois.
This requirement ensures that any sensitive information shared during the mediation process remains private and protected. It prevents either party from disclosing details of the discussions or any documents prepared specifically for the mediation to outside parties. This confidentiality promotes a more open and honest dialogue, which is essential for successful conflict resolution.
Furthermore, all statements made during mediation are strictly confidential and cannot be disclosed to third parties, except for the mediator. Documents prepared for negotiation or mediation should not be copied and must be returned at the conclusion of the process. No statements or evidence from the mediation can be used in subsequent legal proceedings. However, Buona is not obligated to mediate claims related to paragraph 12.2 of the franchise agreement.
This process is typical in franchise agreements to encourage dispute resolution outside of court. By agreeing to these confidentiality terms, the franchisee acknowledges the importance of maintaining privacy during the mediation process and commits to protecting sensitive information. This can help foster a more collaborative environment for resolving disputes and potentially avoid costly and time-consuming litigation.